We will closely monitor the evolution of the exchange rate and risk factors

In its latest report published on Wednesday, the Central Bank of Turkey (CBRT) said “closely monitor the evolution of the exchange rate and related risk factors and it will continue to take the necessary measures and use the proper instruments. “

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In 2022 it will continue to purchase gold ore against try in order to accumulate reserves.

In 2022, we can continue to buy and sell gold versus currency transactions on your spot market.

We will continue to provide banks with fx liquidity at maturities of one week and one month in the central bank’s fx deposit market, capped at approximately $ 50 bln in total.

The The objective will be to strengthen the effectiveness of monetary policy, as well as to increase foreign exchange reserves for the sake of financial stability.

Negotiations to sign swap agreements with other central banks will continue.

The required part of the demand for foreign exchange of state-owned companies will be met directly by the central bank and the Ministry of Finance in accordance with market conditions.

More than one repo auction can be carried out with maturities between 5 and 12 days – when deemed necessary.

We will use reserve requirements as a supporting instrument in pursuit of the objectives of price stability and financial stability.

In 2022, the reservation options mechanism will end completely.

Extensive studies will be conducted to increase the amount of gold collected from under the mattress.

Market reaction

USD / TRY is consolidating the rally to 12.54 achieved after the central bank release. At the time of writing, the pair is up 2.31% on the day, trading at 12.07.