need Turkish Central Bank Banks and commercial lenders are expected to refrain from making large dollar purchases on behalf of their corporate customers until Monday, according to people familiar with the matter.
The people, who asked not to be identified because the information was confidential, said on Wednesday that regulators were trying to ease pressure on companies looking to hoard foreign exchange at the end of the year. The central bank also declined to comment.
As of 2:00 pm Istanbul time, the lira was down 0.1% to 18.7136 to the dollar, its lowest-ever weekly close, according to data compiled by Bloomberg. The Turkish currency’s 29% decline this year makes its performance the worst among its emerging-market peers, after the Argentine peso.
Politicians see Turkey The stability of the lira is the key to curbing consumer prices after its achievement inflation it peaked at over 85%. The weakness of the currency is mainly due to two cycles of devaluation interest rates which were implemented last year and this year, which has led to an increase in inflation.
According to the central bank circular seen by Bloomberg, the monetary authority has issued separate instructions to prevent lenders from using derivatives and options that ultimately allow lira deposits to apply for foreign currency.
