Adviser hopes Moody's, Fitch give Turkey fair rating

ANKARA (AA) - International rating agencies Moody's and Fitch will tarnish their own reputations if they declare negative ratings for Turkey’s economy, chief economic adviser to Turkey’s president told Anadolu Agency Monday.

"I believe these agencies will not declare a negative rating that may disturb their reputation considering the positive macroeconomic indicators of Turkey's economy," Cemil Ertem said.

Ertem's comments came after Moody’s announced on July 18 it would review Turkey’s rating for a possible downgrade following the July 15 coup attempt.

According to Ertem, the public’s response to last week’s failed coup attempt should overcome the risks highlighted by international rating agencies.

Turkey survived a deadly coup attempt on July 15 by rogue elements within the military that killed more than 230 people and injured nearly 2,200 others.

Turkey's government has repeatedly said the coup attempt was organized by U.S.-based preacher Fetullah Gulen and his Fetullah Terrorist Organization.

Gulen is accused of a long-running campaign to overthrow the state through the infiltration of Turkish institutions, particularly the military, police, and judiciary, forming what is commonly known as the parallel state.

Ertem predicted the U.S. dollar would stay below the psychological level of 3.00.

"The psychological bound for USD/TL ratio is 3, and one dollar had come below 3 liras when the markets closed on Friday. I think the USD/TL ratio will continue to stay below this," he said.

According to analysts, moves by the Turkish economic administration to limit the effects of the July 15 coup bid on the economy also helped the Turkish lira's recovery against the dollar.

The adviser also voiced the Turkish government’s intention to form a sovereign wealth fund.

"There are various public funds like unemployment benefit fund and the other ones, whose total value is over $100 billion. Turkey may utilize these funds actively without breaking the budget discipline.

“A separate wealth fund would be set up as well. These issues will be examined by Turkish officials. But, it is certain that this is going to be done," he said.