Breaking News: Central Bank to sell foreign currency!

Istanbul Metropolitan Municipality (IMM) Mayor Ekrem İmamoğlu was detained yesterday morning in a dawn operation as part of a 'terrorism' and 'corruption' investigation.

Following İmamoğlu's detention, markets plummeted. A circuit breaker was triggered on the stock exchange for the second time. Gold and foreign exchange rates hit record levels.

Bloomberg reported yesterday (March 19) that after the lira lost up to 11 percent of its value against the dollar, local lenders sold approximately 8 billion dollars by Wednesday noon to support the lira.

RELATED NEWS - Bloomberg reports: Turkish officials sold 8 billion dollars to lower the dollar

The Central Bank of the Republic of Turkey (TCMB) has made a new announcement regarding forward foreign exchange sales.

FOREIGN EXCHANGE SALE TRANSACTIONS ARE BEING ACTIVATED

According to the TCMB's statement, Turkish Lira-settled forward foreign exchange sale transactions will be initiated to maintain the healthy functioning of the foreign exchange market and to limit fluctuations in the exchange rate.

While this move aims to balance foreign exchange liquidity in the market, it is emphasized that the Central Bank aims to ensure exchange rate stability by intervening in market conditions. Experts evaluate this step as an important measure taken to limit speculative movements in the foreign exchange market.

Details regarding the methods and conditions under which the TCMB will carry out these transactions will be announced in the coming days.

Press Release Regarding Turkish Lira-Settled Forward Foreign Exchange Sale Transactions at the TCMB: https://t.co/PCWey16TyR pic.twitter.com/hiPJeSlRwD

— Merkez Bankası (@Merkez_Bankasi) March 20, 2025

News Source: 12punto