Central Bank intervenes in FX market
Turkey’s Central Bank on Dec. 1 intervened to prop up the value of the Turkish Lira.
The bank said in a statement that it directly intervened in the market by selling transactions due to unhealthy price formations in exchange rates. Later in the day the monetary authority issued another statement and announced that it started to conduct transactions at Borsa Istanbul Derivates Market (VIOP) due to unhealthy price formations in exchange rates.
It was the first intervention by the bank in the forex market since 2014.
Following the intervention, the Turkish Lira gained some ground against the dollar and the euro.
“In FX markets, unhealthy price formations are being observed that are unrealistic and completely detached from economic fundamentals,” the bank said in a statement on Nov. 23.