Turkish falls to new record low

ISTANBUL - Hürriyet Daily News

The Turkish lira lost some 0.3 percent yesterday against the US dollar, trading at all time record of 1.92 per dollar yesterday. 

The fall came after a temporary recovery following the central bank’s charge on lenders an annual 10.63 percent for a week’s borrowing instead of the usual 5.75 percent benchmark rate.
The lira has lost nearly 25 percent in value so far this year.

Yields on benchmark two- year bonds rose three basis points, or 0.03 percentage point, to 10.10 percent, a Royal Bank of Scotland Plc index of the securities showed.

The central bank in Ankara lent 15 billion liras in a one- week repo auction at 10.63 percent after receiving bids for 58.2 billion liras. 

Governor Erdem Başçı said on Dec. 28 that the bank may stop charging 5.75 percent for its weekly repurchases and, instead, lend at higher rates on “exceptional” days. It will seek to influence the exchange rate by how it provides funding to banks, deciding on its policy daily, he said. Başçı also said the bank may offer up to $1.35 billion in daily dollar auctions on “exceptional” days.