Turkey’s Central Bank injects US dollar into forex markets for third time this month

Citing "unhealth price formations," the Turkish Central Bank on Dec. 10 intervened in the foreign exchange markets for the third time this month to stem the lira’s decline against the U.S. dollar. The bank's move came after the lira weaned to a record low of 13.95 per dollar in the morning.

Friday December 10 2021 02:35 pm

Duvar English - Anadolu Agency

Turkey's Central Bank on Dec. 10 intervened in foreign exchange markets for a third time this month, citing "unhealthy price formations."

Following the bank's announcement released amid fluctuating foreign exchange rates, the Turkish lira slightly gained ground against the dollar, falling to 13.75 from 13.95.

After the lira saw the level of 14 against the dollar last week, the Central Bank intervened twice in the market by selling the U.S. currency.

Both interventions began as the exchange rate rose above 13.8.

The Central Bank announces foreign exchange interventions to the public on the same day, with the amounts published 15 days later.

President Recep Tayyip Erdoğan has been interfering with the working of the Central Bank, pushing it to lower interest rates despite high inflation and devaluing currency.

This unorthodox approach has resulted in the Turkish lira plunging to a record low of 14 to the U.S. dollar, and Turkish citizens rushing to buy hard currency to protect their savings.