CBRT sells US$ 1 billion despite Governor says bank won’t sell dollars to suppress exchange rate

It turned out that the Central Bank had made a $ 1 billion sale some time after the decision that there would be no foreign exchange sales to suppress the exchange rate. A senior official in the economic administration said that this had been done to meet the need for foreign exchange liquidity generated in the market due to CCM returns (KKM, currency rate protected deposit accounts).

It was stated that the Governor of the Central Bank Hafize Gaye Erkan had given important messages about the new period in monetary policy at the meeting she held with bankers after the decision to raise interest rates on June 22. Accordingly, it was stated that there would be no foreign exchange sales to suppress the exchange rate.

$1 BILLION SALES

According to the news in Economim web page, it turned out that $ 1 billion in sales had been made through public banks on the day Erkan’s meeting was on the agenda. An announcement has come from the economic management regarding the sale in question.

In a statement to Reuters, the official underlined that the Central Bank’s stance of not selling through public banks continues, “There is no effort to suppress the exchange rate. The transaction is not an intervention in the exchange rate, but a liquidity provision process that ensures healthy price formation in the market and reduces volatility.”

Bankers point out that there is an intense volume of exchange rate protected deposit account (KKM) returns this week.