ISTANBUL:
The Turkish lira is down 5%. and erasing the large gains gained the previous week, as concerns about increasing inflation and unconventional monetary policy remained. The Turkish lira is down 5%.
There’s lots of focus on Turkey at the moment, but the reality is that depreciation pressure has been building across EM in the last two weeks. The Brazilian Real is down 5.3 percent versus the Dollar, Turkish Lira is down 5.9 percent, and South Africa’s Rand is down 6.7 percent. pic.twitter.com/XVS24V7Moe
— Robin Brooks (@RobinBrooksIIF) August 10, 2020
After minimal early reaction to the central bank’s (CBRT) 2022 policy document. Which stated that it will monitor risks associated to the foreign exchange market and do what is necessary to guarantee its smooth operation.
The Turkish lira is down 5%
The losses accelerated. By 1253 GMT, the currency had plummeted to 12.5 lire. Despite a 50 percent increase last week as a result of government-backed market interventions, it has lost 40 percent of its value this year.
Talking about #volatility, the Turkish Lira (#TRY) is all over the place. Up 5% yesterday, down 3% today… pic.twitter.com/dC0TT7lJOe
— jeroen blokland (@jsblokland) November 10, 2020
“The CBRT makes no commitment to any exchange rate level and will not engage in foreign exchange buying or selling activities to achieve that level.” “control the level or direction of exchange rates,” according to the bank.
In the first quarter, it says it would closely evaluate the impact of its policy initiatives, and “the policy framework will be revise in order to provide a foundation for sustainable price stability.” Following billions of dollars in state-backed market interventions, the Turkish lira soared last week.
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