The intervention was the fourth such move by the lender since December 1, Sabah said. This circumstance is due to the inefficiency of the Turkish lira, which on Monday fell 7% to a record low of 14.99 against the dollar.
The Central Bank said in a statement that the bank "directly" intervened in the market "through sale operations due to the unhealthy price dynamics of exchange rates.
The publication reminds that the lender intervened in the market on December 1, 3 and 10, selling the U.S. currency.
We should add that the Central Bank announces the intervention in foreign currency on the same day, and the amounts are published after 15 days.
However, the Central Bank warned last month that it was observing unhealthy price formation in foreign exchange markets, which is "unrealistic and completely disconnected from economic fundamentals.
Most emerging market central banks have raised interest rates this year to compensate for the spike in inflation following the lifting of COVID-19 restrictions, the article specifies.
Since September, however, the Turkish central bank has lowered its benchmark rate, the one-week repo rate, by 400 basis points to 15% and has signaled that further easing is expected before the end of the year.
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