Free Trial

CBRT Officially Announces FX intervention for Frist time since 2018/19

TURKEY
  • The CBRT has just announced its first official intervention on the books to stabilise the lira after a few weeks of letting the currency go. This comes after getting pledges from Turkmenistan and the UAE to support the CBRT through currency swaps, but reserves remain in a critically constrained position.
  • This is the first time the bank has made an official announcement since the last heavy bout of intervention in 2018/19 where the CBRT burned through $128bn in to defend the currency (unsuccessfully).
  • The question is whether the CBRT views the 14.00 level as its line in the sand, and how aggressively it wishes to defend the currency amid sustained depreciation pressures.
  • This could also be a prelude to more aggressive unconventional measures to curb lira weakness with the leadership team hell bent on reducing rates further in an environment that is not conducive to TRY strength.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.