Central Bank of Turkey ready to prevent further depreciation of lira

The Central Bank of Turkey has sufficient experience to prevent the depreciation of the lira against the dollar, deputy chairman of the Central Bank of Turkey Necati Sahin told reporters May 14 in Baku.

“Of course, we are concerned about fluctuations of the US dollar rate against the Turkish lira, but we have enough experience to prevent excessive depreciation of the national currency,” he said.

He went on to add that the decline of the lira to a certain extent affected the investment climate in the country. In the first quarter of 2015 investments in Turkish economy amounted to $2.8 billion, which is 9.15 percent less than the same period last year.

However, a rise in price of the dollar on the foreign exchange market is a normal phenomenon, as it happens not only in Turkey but also in many countries around the world, according to Sahin.

On April 23, 2015, the national currency of Turkey renewed its historical minimum, reaching 2.7343 Turkish lira (TRY) to the dollar.

The official rate of the Central Bank of Turkey on May 14 is 2.6334 TRY / USD.

In April 2015, the Central Bank of Turkey decided not to change the interest rate and left it at 7.5 percent. This led to a further decline of the lira rate against the dollar rate, according to experts. Starting from early 2015, the lira has depreciated by about 15 percent.

In order to protect the lira rate, Turkish Central Bank resumed REPO auctions since April 30. The regulator is ready to provide banks with a maximum of 13.7 billion lira.

/By Trend/