these effects. chart 1. chart 2. ( move index ) ( basis points ) ( 4 - week moving average, billion usd ) vix and us interest rate volatility index source : bloomberg. bis central bankers ’ speeches portfolio flows to emerging economies and currency volatility index ( jpmvxyem ) ( percent ) source : epfr, bloomberg 1. monetary policy and financial conditions as you all know, we released a road map on 18 august 2015 regarding the policies to be implemented before and after the normalization of global monetary policies. in line with this road map, we kept our policy stance tight against the inflation outlook, stabilizing for the fx liquidity, and supportive of financial stability. in order to simplify the operational framework of the liquidity policy, we terminated the lower interest rate on borrowing facilities provided for primary dealers by the cbrt and simplified collateral conditions following the announcement of the road map. we aimed to enhance the efficiency of banks ’ liquidity management by adopting the use of foreign exchange deposits as collaterals against turkish lira transactions. moreover, we took further steps to support foreign exchange liquidity, core liabilities and long - term borrowing. in view of inflation expectations, the pricing behavior and other factors affecting inflation, we maintained the tight monetary and liquidity stance throughout 2015. accordingly, we kept the one - week repo rate, the overnight lending rate and the overnight borrowing rate unchanged at 7. 5, 10. 75 and 7. 25 percent, respectively, during the last quarter of 2015 and the first month of 2016. one - week repo auctions continued to be the main tool for the cbrt funding, while the share of the marginal funding remained high ( chart 3 ). thus, the average funding rate settled at around 8. 9 percent as of january 2016, higher than the one - week repo rate. additionally, we kept the interbank overnight repo rates at the upper band of the interest rate corridor ( chart 4 ). our future monetary policy decisions will be conditional on the inflation outlook. taking into account inflation expectations, the pricing behavior and the course of other factors affecting inflation, we will maintain our tight monetary policy stance as long as deemed necessary. chart 3. chart 4. ( 2 - week moving average, billion tl ) ( percent ) cbrt funding * * marginal funding is o / n funding quoted at the upper limit of the corridor. source : cbrt. cbrt rates and bist inter

durmus yılmaz : turkey ’ s economy and the financial crisis opening speech by mr durmus yilmaz, governor of the central bank of the republic of turkey, at the society for economic dynamics annual meeting, istanbul, 1 july 2009. * * * distinguished members of the world economic society, esteemed guests, i would like to welcome all the participants of the annual meeting of the society for economic dynamics to istanbul, the oldest metropolis of the world, which has been elected as european capital of culture for 2010. the global financial crisis, which has deeply depressed global economic activity and rendered the effectiveness of decision - making and supervision mechanisms questionable, still persists with its direct and indirect effects. although recent weeks have accommodated signals of the diminishing effect of the crisis and the start of recovery ; these signals still remain weak. while recent data on economic activity indicate that the worst is over, problems in credit markets linger, and unemployment figures are still on the rise, suggesting that the recovery will be slow and gradual. therefore, i believe that the expectation of “ cautious optimism ” should prevail not only for the turkish economy, but also for the world economies as a whole. if you ask what is the most significant factor that requires us to be cautious, it is possible to answer in a single word : uncertainty. due to growing uncertainty, error margins in forecasts may get wider in the near future. this is because the main reasons underlying the outbreak of the current financial crisis are deficiencies and mistakes in the establishment of economic policies along with the fulfillment of regulatory and supervisory activities. nevertheless, we all know that the reconstruction of economic balances under normal conditions relies on the proper execution of these functions. another factor leading to uncertainty is the enforcement of global financial and monetary measures of a size, speed and coordination that has never been witnessed before. this raises ambiguity pertaining to the responses to these measures from financial markets and economies in the upcoming period. in the current conjuncture there is a consensus that the recovery in global economic activity will not be anytime soon and what worries the global community is what will follow the crisis. the question about mechanisms to avert any future global financial crisis similar to the current one will completely occupy the agenda of academics and policy - makers in the near future. moreover, the extent and pace of the reversion for financial measures and nontraditional monetary policy exercises against the financial crisis on the back of stabilization in economies will top agenda very soon.