Central Bank of Turkey purchases foreign currency to reduce excessive volatility
The Central Bank of Turkey recently observed excessive volatility in the foreign exchange market. With the appreciation of the US dollar in international markets, the volatility in the value of Turkish lira, particularly against the US dollar, has become more apparent. In this framework, the Central Bank directly intervened in the foreign exchange market by buying foreign currency in order to dampen the excessive volatility.
The Central Bank has announced in the past that under the floating exchange rate regime, the level of exchange rate is determined by supply and demand conditions in the money markets but the volatility in exchange rates remains closely monitored by the Central Bank and that the Central Bank may directly intervene in the markets in the event of an excessive volatility that might occur in both directions. — (menareport.com)
© 2003 Mena Report (www.menareport.com)