Turkish Central Bank will not directly intervene in currency market

Baku. 10 January. REPORT.AZ/ “Direct intervention with currency market by Central Bank of Turkey (TCMB) would be a wrong decision.”

Report informs, referring to Bloomberg, Turkey’s economy minister Nihat Zeybekçi told. He also told that increase of interest rates will harm the economy.

Notably, TCMB decreased interest rate for reserves in foreign currency by 0.5%. Thus, the TCMB passed additional 1.5 bln USD liquidity to banking sector. USD exchange rate declined from 3,7880 TRY/USD to 3,74 TRY/USD after this decision. But current process of strengthening of USD in world market kept on pressure on Turkish lira and reverted exchange rate back to 3.77 TRY/USD.

Report’s expert group forecasts further increase of USD rate in case of increase of interest rate by TCMB.