‘There are two important things to consider’

Şahap Kavcıoğlu, Chairman of the Central Bank of the Republic of Turkey, attended the OIC-COMCEC (Organization of Islamic Cooperation) central banks forum meeting. In his opening speech, Chairman Kavcıoğlu stated that three important issues came to the fore in the global uncertainty environment.

  • Will the increased inflationary pressures be temporary or permanent?
  • How will the course of regional conflicts progress?
  • What kind of policies will central banks implement in an environment of increasing uncertainty?

Stating that besides the pandemic, the war added to the existing concerns regarding the global economy and increased the uncertainties regarding the economic outlook, Kavcıoğlu said that the negative effects of these shocks differed between countries in terms of timing and severity.

Continuing his words, Kavcıoğlu said, “Encouraging the use of national currencies in international trade and working on the possibilities of using central bank digital currencies are two important issues that should be considered in this regard.”

Other statements in President Kavcıoğlu’s statement are as follows:

“In this challenging environment, we, as the member countries of the Organization of Islamic Cooperation (OIC), need to strengthen our efforts to increase the resilience of our economies.

We have a rich community of different economies under the OIC roof. We can turn this diversity between our countries into an opportunity by establishing closer cooperation within the OIC.

Building a more integrated financial system between our countries will allow for more efficient capital allocation in line with the win-win principle.