The Central Bank of Türkiye is gradually abandoning foreign exchange interventions in order to stabilize the Turkish lira, according to the Ekonomim newspaper, Report informs referring to TASS.
Head of the Central Bank, Hafize Gaye Erkan, made it clear about radical changes in monetary policy at a meeting with Turkish bankers, which took place after the interest rate hike. Erkan pointed out that the top priority is to fight inflation.
She also signaled that foreign exchange interventions aimed at ‘containing the exchange rate’ would be phased out.
Ekonomim notes that a significant increase in the reserves of the Central Bank of Türkiye, which was previously announced by Minister of Finance and Treasury Mehmet Simsek, confirms the cessation of sales of foreign currencies by the central bank.
According to the Central Bank of Türkiye, inflation in the country as a whole slowed down slightly in May compared to May 2022, amounting to 39.59%.
Earlier, the Central Bank increased the key rate from 8.5% to 15%, promised to pursue a tighter monetary policy and curb inflation.