Turkish Lira Pares Drop as Central Bank Chief Vows Tight Stance

Turkish Lira Pares Drop as Central Bank Chief Vows Tight Stance

Turkish Lira Pares Drop as Central Bank Chief Vows Tight Stance © Bloomberg. A market trader handles a 20 lira banknote on her food stall in Istanbul.

(Bloomberg) — The lira pared its seventh day of declines as Turkey’s new central bank governor Sahap Kavcioglu promised a “tight monetary stance.”

The lira trimmed its losses to 1.4% at 8.3295 per dollar as of 2:59 p.m. in Istanbul after Kavcioglu’s remarks at the central bank’s annual board meeting in Ankara. The currency had weakened almost 3% earlier in the session.

Turkey will continue to keep its benchmark one-week repo rate above consumer inflation and the central bank is determined to bring inflation to its 5% target in 2023, Kavcioglu said. The central bank chief pledged to use monetary tools effectively and “independently.”

©2021 Bloomberg L.P.

Original Article

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *