Arab Today, arab today turkish central bank tightens policy to shore up lira
Last Updated : GMT 06:23:41
Arab Today, arab today
Arab Today, arab today

Turkish central bank tightens policy to shore up lira

Arab Today, arab today

Arab Today, arab today Turkish central bank tightens policy to shore up lira

Ankara - AFP

The Turkish central bank ramped up its monetary conditions on Monday to shore up the local currency, the lira, after it slumped to a record low value against the dollar. The bank announced that it was applying immediately a \"strong\" tightening of monetary conditions. \"A strong extra monetary tightening will start as of today,\" the bank\'s governor Erdem Basci said in a statement. \"It\'s essential that the extra monetary tightening is strong, effective and temporary,\" he said. In late morning trading the lira was being traded at 1.9488 to the dollar, having firmed from a record weak level of 1.9740 earlier in the day. Analysts said the latest decision was not a surprise. \"This is not the first time that the central bank has done this as we have seen two recent episodes of additional tightening on June 11 and between June 19-21 more recently,\" Sengul Dagdeviren at ING Bank based in Turkey told AFP. \"The move was not a surprise and shows that the central bank will continue to tame volatility within existing policy framework, ready to sell more FX (foreign exchange) via auctions too,\" she commented. Basci added that the latest measures would be applied for as long as required, depending on developments on the foreign exchange market. In a presentation to economists on changes in policy, the bank said that it would continue gradually to shift the way in which the flow of lira was made available to the Turkish financial sector. This would be done by switching liquidity from net foreign assets to net domestic assets until the bank\'s next monetary policy committee meeting later this month. \"This strategy will not only soften extremely rapid credit growth but also support the value of the Turkish lira,\" a summary on the bank\'s website said. The central bank is independent of the government in setting monetary policy. On the government debt market, Turkey\'s 10-year borrowing rate stood at 8.8 percent as the central bank announced its new tough action. The yield had climbed to more than 9.0 percent on June 21, amid a wave of unprecedented protests against Prime Minister Recep Tayyip Erdogan and his Islamic-based government. The borrowing rate was slightly above 6.0 percent in April. The Istanbul stock market plunged in early June. Victor in three elections in a row, Erdogan has overseen strong economic growth -- an average five percent a year since he first won office in 2002. The economy is ranked as the 17th biggest in the world, and the government hopes it will become the 10th-biggest within a decade. But last month, the governing Justice and Development Party (AKP) was shaken by nationwide demonstrations, the most serious public challenge since it came to power in 2011. Erdogan blamed various groups both inside and outside the country, including what he called an \"interest rate lobby\" of speculators pushing for high returns. This referred to pressure in some quarters for a rise in interest rates to support the currency and retain foreign capital. Turkey, in common with many emerging economies is subject to signals from the US Federal Reserve bank that it will soon begin to wind down its special injections of money into the financial system to support the US economy. The prospect that US monetary conditions will become tighter has caused some funds to be withdrawn from emerging economies. \"The pressure on the Turkish lira is solely in parallel to the economic monetary pressure in the rest of the world,\" said Dagdeviren. \"We don\'t think local issues have been a significant decoupling factor so far for local markets,\" she added. The Turkish economy grew by 2.2 percent in 2012, short of the government forecast of 3.2 percent expansion. This was a major slowdown from 2010 and 2011 when the Turkish economy grew by 8.9 percent and 8.8 percent respectively.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today turkish central bank tightens policy to shore up lira Arab Today, arab today turkish central bank tightens policy to shore up lira

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today turkish central bank tightens policy to shore up lira Arab Today, arab today turkish central bank tightens policy to shore up lira

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Airbus CEO says won't cling to job

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Norway seeks 'Tesla tax' on electric cars

GMT 08:17 2017 Friday ,13 October

Norway seeks 'Tesla tax' on electric cars
Arab Today, arab today Safaa Sultan happy for “Love School”

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:19 2017 Wednesday ,11 October

Bosy reveals behind her participation in festival

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:16 2017 Friday ,13 October

Lufthansa to swallow lion's share

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday