Central Bank intervenes in FX markets again

ANKARA

The Central Bank intervened in the foreign exchange markets for the second time this week, according to a statement made on Dec. 3.

“The Central Bank of the Republic of Turkey directly intervenes in the market via selling transactions due to unhealthy price formations in exchange rates,” it said.

The Turkish Lira gained ground against the U.S. dollar slightly, recovering to to 13.41 from 13.88 after the announcement.
The bank’s previous direct foreign exchange intervention was announced on Dec. 1 for first time since January 2014, when it had made a sale of $3.15 billion. The currency touched a record 14 on Nov. 30.

The latest intervention amounts are expected to be published within 15 days.

Portfolio flows to emerging markets slowed by $100 billion last month from a year earlier and decelerated from October, the Institute of International Finance (IIF) said on Dec. 3. That was caused by weaker EM currencies, it said.