. needless to say, the course of commodity prices has implications on many other key macro variables. for example, as a net energy - commodity importer, turkey ’ s dependence on energy imports makes the current account balance more sensitive to volatility in commodity prices. recent uncertainty surrounding the energy market is not comparable to any other period in the near history. moreover, there is a significant risk that commodity prices stay volatile due to uncertainties regarding global economy and the exceptionally loose monetary policies across the globe. therefore, medium - term outlook for commodity prices is unusually hard to predict. in the long term, supply conditions and structural policies should adjust to stabilize the energy and other commodity prices. the recent concrete steps as part of the medium term programs in turkey, aiming at curtailing the dependence on energy imports by switching towards domestically produced and renewable energy sources, have important implications also for decreasing the sensitivity of current account balances to international price movements. the key question here is how to smooth out the impact of the volatility in energy and other commodity prices on the domestic economy in the short to medium term, while there is a heightened degree of uncertainty regarding financial and real factors. introducing a fixed element into the sales tax on gasoline or other energy prices might be an effective method in dealing with this issue. in the case of turkey, for example, there are two types of taxes on the retail gasoline prices. the first one is the vat that is proportional to the price ; the second one is the special consumption tax ( sct ) that is a fixed tax. the sct forms a significant portion of the retail gasoline prices and attenuate the volatility of final prices that consumers face, since it is not a proportional tax. this tax structure not only smooths out the fluctuations in retail gasoline prices but also avoids the need for subsidies, discretionary choices and associated fiscal costs. this conference serves as a perfect platform to discuss alternative methodologies on these issues. once again i would like to welcome you all to istanbul and hope that we will address some of the challenges regarding commodity prices and the global economy in this meeting. thank you. bis central bankers ’ speeches

qualified team of inspectors. there are no specific international standards on this matter. all the principles and recommendations mention supervision as the core component of prevention, but we are still in need of a standardized methodology. the third pillar is rating. we believe that specific rating mechanisms developed by local supervisors should be implemented, on the basis of an agreement on aspects such as components to be rated, and the rating systems applicable to financial institutions. although traditionally we have rated financial institutions mainly according to liquidity and solvency considerations in order to protect the stability of financial systems, we consider that rating banks on the basis of compliance with aml / cft regulations will be relevant. the last pillar concerns information sharing. guidelines for the use of information and to which extend it may be shared should be defined. all of this, with special emphasis on the analysis of the legal frameworks of the different jurisdictions. standards with these features would allow to enhance awareness of financial systems on aml / cft matters, providing them with a credible and stable framework for conducting their businesses and, in addition, for developing a valuable flow of information that can be exchanged between private sector parties and between the private and the public sector. this supervision methodology, in the process of being implemented in argentina, includes technical assistance from international institutions such as the world bank. our vision is fully consistent with the risk - based approach that allows financial institutions to focus their resources on those operations, transactions, customers and accounts that show greatest vulnerability to global crimes. these approaches - already adopted by countries such as the united states - are included in several of the regulatory aspects proposed by the us patriot act, and are in line with the spirit of many of the recommendations of the fatf. the risk - based approach recognizes that the banking business has peculiarities linked to cultural and historical matters associated with each region. therefore, any regulatory framework must be flexible enough to be able to ensure certain discretion to member countries, being applied on the grounds of their knowledge of their own banking and financial practices. there is no unique solution or pre - established methodology for governments or international institutions to define the nature and content of a risk - based approach. nevertheless, certain principles have been developed, describing basic concepts, which serve as a guide to develop and implement a system that can operate reasonably. however, specific aspects must be developed by the institutions on the basis of the particularities of each case. standards that, for example, break down risk into three vectors - country risk, customer risk and service