Turkey’s central bank sold foreign currency for the third time this month to stem the fall of the pound closer to the $ 14 mark.
The monetary authority said in a statement that it had intervened in the market because of unhealthy prices, echoing the language used by President Erdogan to describe a new sell-off of the currency.
The pound reversed the losses for a while, and stood at 13.8252 against the dollar.
The move comes as the Turkish currency weakened by as much as 1.2% to 13.9548 against the dollar, and was close to the levels the central bank intervened twice earlier this month.
The currency has fallen 38% since late September when the central bank began cutting borrowing costs, following Erdogan’s persistent demand for lower interest rates.
Policymakers have cut their one-week refinancing rate by 400 basis points to 15% this year, despite rising inflation to 21.31% in November, a three-year high.
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Source From: Capital
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