Turkey’s central bank: Will closely monitor exchange rate developments and related risk factors
29.12.2021, 09:23

Turkey’s central bank: Will closely monitor exchange rate developments and related risk factors

In its latest policy framework report published on Wednesday, Turkey’s central bank (CBRT) said that it “will closely monitor exchange rate developments and related risk factors and continue to take the necessary measures and employ due instruments. “

Additional takeaways

In 2022 will continue gold ore purchases against try with a view to accumulating reserves.

In 2022, may continue gold buying and selling transactions against fx in its spot market.

Will continue to provide banks with fx liquidity at one-week and one-month maturities at the central bank fx deposit market, with a limit of approximately $50 bln in total.

Will aim to strengthen the effectiveness of the monetary policy as well as boosting forex reserves for the sake of financial stability.

Negotiations to sign swap agreements with other central banks will continue.

Required portion of the fx demand of the state-owned enterprises will be met directly by the central bank and finance ministry according to market conditions.

More than one repo auction may be conducted with maturities between 5 and 12 days -when deemed necessary.

Will use reserve requirements as a supporting instrument in pursuit of the price stability and financial stability objectives.

In 2022, the reserve options mechanism will be completely terminated.

Comprehensive studies will be carried out to increase the amount of gold collected from under the mattress.

Market reaction 

USD/TRY is consolidating the spike to 12.54 reached after the central bank statement. At the time of writing, the spot is higher by 2.31% on the day, trading at 12.07.

Separately, the country’s official gazette announced earlier that they will promote the conversion of gold savings into liras.

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Izvršenje trgovinskih operacija sa finansijskim instrumentima upotrebom marginalne trgovine pruža velike mogućnosti i omogućava investitorima ostvarivanje visokih prihoda. Međutim, takav vid trgovine povezan je sa potencijalno visokim nivoom rizika od gubitka sredstava. Проведение торговых операций на финанcовых рынках c маржинальными финанcовыми инcтрументами открывает широкие возможноcти, и позволяет инвеcторам, готовым пойти на риcк, получать выcокую прибыль, но при этом неcет в cебе потенциально выcокий уровень риcка получения убытков. Iz tog razloga je pre započinjanja trgovine potrebno odlučiti o izboru odgovarajuće investicione strategije, uzimajući u obzir raspoložive resurse.

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