ZCZC
BCN-33
TURKEY-ECONOMY-FOREX
Turkey central bank ready to take ‘all necessary measures’ for stability
ISTANBUL, Aug 13, 2018 (BSS/AFP) – Turkey’s central bank on Monday
announced it was ready to take “all necessary measures” to ensure financial
stability after the collapse of the lira, promising to provide banks with
liquidity.
“The central bank will closely monitor the market depth and price
formations, and take all necessary measures to maintain financial stability,
if deemed necessary,” the bank said in a statement, vowing to provide “all
the liquidity the banks need”.
The statement came after the Turkish lira hit record lows against the
dollar amid a widening diplomatic spat with the United States.
The detention of US pastor Andrew Brunson since October 2016 on terrorism
charges has sparked the most severe crisis in ties between the two NATO
allies in years.
The central bank announced the series of measures on Monday, a day after
Erdogan’s son-in-law Berat Albayrak, who is treasury and finance minister,
announced an action plan was in the pipeline.
“In the framework of intraday and overnight standing facilities, the
Central Bank will provide all the liquidity the banks need,” the bank said.
The bank also revised reserve requirement ratios for banks, in a move also
aimed at staving off any liquidity issues.
It said with the latest revision, approximately 10 billion lira, $6
billion, and $3 billion equivalent of gold liquidity will be provided to the
financial system.
The nominally independent central bank has defied pressure to hike
interest rates which economists said would curb the fall of the lira.
Erdogan on Saturday called interest rates as “tool of exploitation” that
makes the poor poorer and the rich richer.
BSS/AFP/HR/1225