تركيا تواجه ضغوط الطاقة برفع مرتقب للأسعار

The Turkish government is considering adjusting electricity and natural gas prices during this month, in a move aimed at containing the repercussions of rising global energy prices, amid military escalation in the Middle East and its effects on oil and gas markets.

Increasing Burden on the Budget

Turkish Finance Minister Mehmet Şimşek explained that the current pricing system is no longer sustainable if oil prices continue to rise, warning of the increasing pressures on the state’s public budget due to energy subsidies.

Parallel Monetary Moves

In parallel, the Turkish central bank has taken a series of measures to support financial stability, including maintaining the course of monetary policy and raising the overnight interest rate by about 300 basis points to approach 40%, along with interventions in the foreign exchange market using cash and gold reserves.

Meetings with Investors

During meetings held in the British capital, London, Turkish officials assured international investors that the country is capable of handling the repercussions of rising energy prices, while keeping the possibility of adjusting monetary policy open depending on the developments of the situation.

The discussions indicated that the option of raising the main interest rate is on the table for consideration at the upcoming monetary policy meeting, should pressures on the local currency and rising energy prices persist.

Open Scenarios

Observers believe that the continuation of geopolitical tensions in the region may prompt Ankara to take additional steps, whether in terms of energy pricing or monetary policy, in an attempt to balance economic stability with facing external shocks.