Turkey is now prioritizing a "sincere" fight against rising prices, putting aside "orthodox policies" and charting its own course, the country’s treasury and finance minister said Wednesday.

"We have put aside orthodox policies, now it is heterodox policies," Nebati told an Independent Industrialists and Businesspersons Association (MÜSIAD) meeting in the capital Ankara.

He stressed Turkey would not compromise on budget discipline and would implement monetary and fiscal policies in harmony.

"We will move on our own path, not on a path drawn for us by others," he said, vowing to introduce new instruments to support production-focused, manufacturing and export-oriented companies.

Nebati stressed the country would continue its fight against soaring consumer prices with determination, noting that they had deployed all instruments to strengthen the Turkish lira, which reversed what he said was a "bubble" in the exchange rate.

"The exchange rate is no longer being discussed. Exchange rates have stabilized under free market conditions, it is now off our agenda," the minister noted.

The country’s annual inflation in December accelerated to its highest level in 19 years. Consumer prices rose to nearly 36.1%, the highest reading since September 2002, official data showed Monday, driven by the lira swings and transport and food prices.

The lira depreciation and a series of administered price rises – including for utilities and wages – are forecast by economists to push inflation higher in the coming period.

Nebati on Tuesday said the country looks to lower inflation through new financial instruments similar to the recently unveiled deposit-protection scheme and by increasing the lira’s attractiveness.

Speaking to his ruling Justice and Development Party (AK Party) on Tuesday, President Recep Tayyip Erdoğan said the government would not abandon citizens to "extreme" price hikes and volatile exchange rates, which he said they see as "thorns" on the path.

"God willing, we have left the worst behind us. From now on, it is time to reap the benefits of our efforts, to show our people that we are approaching our goals."

Erdoğan said they had taken the "bubble" over the exchange rate with the recently unveiled scheme to safeguard lira deposits against currency volatility.

"We will now rapidly remove the bubble over inflation and save the country from the outlook it does not deserve," he noted.

Inflation has been around 20% in recent months, driven by the lira slide after the central bank slashed its policy rate by 500 basis points to 14% from 19% since September. It will hold its next rate-setting meeting on Jan. 20.

Deposits in the forex-protected scheme announced by Erdoğan on Dec. 20 have reached TL 91.5 billion (about $6.8 billion), Nebati said.

The scheme effectively ties the value of special new deposits to the United States dollar by promising to compensate for losses incurred from swings in the exchange rate.

The initiative had reversed the lira slide and triggered a historic 50% surge in the currency’s value in the week through Dec. 24.

The lira firmed as much as 1.3% to 13.275 in early trade on Wednesday before reaching 13.42 by 7:42 a.m. GMT, from a close of 13.45 on Tuesday. It had hit a record low 18.4 two weeks ago before rebounding following the government’s steps to support the currency.

Erdoğan has been endorsing a new economic model based on lower borrowing costs, and the government, regulators and banking associations have all embraced the new policy direction.

A consistent and vocal opponent of high borrowing costs, Erdoğan has been reiterating a view that high interest rates cause inflation.

Also addressing the meeting, Mahmut Asmalı, chairperson of MÜSIAD, said the recently unveiled scheme had boosted hopes of producers, industrialists and investors for 2022, also reiterating the association's support for the new economic model.

The rebound in the lira has significantly lowered cost inflation pressure over prices in the domestic market, Asmalı noted. "We believe this period is a milestone for the Turkish economy."

"The new economic model was built based on high exports, reducing the current account deficit and reflecting the welfare system to the whole of society," he added.

"The said scheme has eliminated many elements that had held the exchange rate under upward pressure, and the perception and manipulation over the Turkish lira will also end," Asmalı said.

Nebati's focus was also on foreign trade data, which showed exports surged by more than a third to record $225 billion last year.

Turkey will continue its export-oriented policy, Nebati noted, stressed that the new economic model would help Turkey switch from registering the current account deficit to the current account surplus.