By Bahattin Gonultas
ANKARA (AA) – Turkey's Financial Stability Committee discussed with all details the problems in the private sector management of foreign exchange risks, the Turkish Treasury said on Thursday.
"The effects of recent global and local developments on domestic financial markets as well as the outlook were discussed, at the Twenty-ninth meeting of the Financial Stability Committee, under the chairmanship of Deputy Prime Minister Mehmet Simsek," the Treasury said in a statement.
The Treasury said that the developments in the Turkish banking system, whose regulatory and supervisory framework is considered equivalent according to the decision adopted by European Commission on Dec. 20, 2016, were assessed.
"At the meeting, the management of exchange risk of real sector firms was also elaborated. Monitoring frameworks for financial stability were discussed and auto-enrollment system in private pension scheme was assessed," the Treasury added.
The Treasury did not provide details on what action the country would take against foreign exchange risks.
On Tuesday, Deputy PM Mehmet Simsek, who helps oversee economic policy, said the country’s Financial Stability Committee would discuss problems in the private sector management of foreign exchange risks on Wednesday.
The Turkish lira has declined as much as 16.87 percent against the U.S. dollar in 2016, underlining risks in foreign debt payments in the Turkish private sector, which is largely dependent on external capital inflow.
The Turkish private sector's long and short-term external debt stood at $224.4 billion at the end of Oct. 2016, according to the country's central bank.