People familiar with his remarks said CBRT Governor Fatih Karahan told investors in Bangkok that Turkey is allowing the lira to depreciate faster to avert a larger long-term devaluation. He said FX pass-through to inflation has weakened as economic activity has slowed. Speaking at the IMF and World Bank annual meetings, Karahan stressed the need for a sustainable exchange-rate framework, noting his term ends in Feb 2028 and he wants to avoid a successor feeling compelled to deliver a sharp deval

People familiar with his remarks said CBRT Governor Fatih Karahan told investors in Bangkok that Turkey is allowing the lira to depreciate faster to avert a larger long-term devaluation. He said FX pass-through to inflation has weakened as economic activity has slowed. Speaking at the IMF and World Bank annual meetings, Karahan stressed the need for a sustainable exchange-rate framework, noting his term ends in Feb 2028 and he wants to avoid a successor feeling compelled to deliver a sharp devaluation. He added any faster depreciation must preserve domestic savers’ perception that holding lira yields attractive returns.