The Turkish lira fell and its exchange rate approached 14 lira to the dollar on Friday (Getty)
The flag of "The New Arab" from private sources, intervene Turkish Central Bank "Directly" today in the market, after the downturn Turkish lira exchange rate And approached 14 pounds to the dollar today, Friday.
While the sources who preferred not to publish their identity because they are not authorized to declare that “the continuation of the Central Bank’s intervention is a necessity in the face of the continuation of speculation,” they did not disclose the size of the intervention and whether it is a policy that will continue until the price of the lira improves, which Turkish officials see as “unfair and not real.” Rather, it is a psychological price that is affected by the campaigns that advertise on Turkey, the economy and the lira.
was Turkish Central Bank, may intervene in early December, selling one billion and forty million dollars, in two sessions, noon and evening, in the markets, followed by a second intervention a week later, but these interventions did not break the foreign exchange rate and the lira improved.
The exchange rate of the lira at the beginning of this month, when the Central Bank intervened for the first time, was about 13.5 pounds against the dollar, so that the exchange rate improved a little, before it fell back last week, to 13.6 and reached 13.8 yesterday, and the decline continues today in the morning, to record the lira 13.908 against one dollar, Before the announcement of the central intervention.
Observers expect that the positive effects of the continuation of direct intervention will be evident in succession, after speculators touched the government’s seriousness in defending the lira and the reassurance of savers, noting the resignation of Finance Minister Lotfi Alwan and Turkish President Recep Tayyip Erdogan’s determination to reduce the interest rate, which fell from 22% last year to 15% today.
Regarding the approximate price that the Turkish government seeks as a result of the intervention, the sources believe that the logical price of the dollar does not exceed 12 Turkish liras, and this price is appropriate during the current period to be closed for the current year, although it increases the price inflation that the government will notice by raising salaries and wages, but it benefits tourism. And exports, “the plans are to improve the price of the lira more, but speculation, including foreign ones, is at its most intense and has become a war against the independence of the economic decision in every sense of the word.”
This year is considered the worst ever, for the Turkish lira, which lost more than 47% of its value, after it fell from 7.4 to about 13.9 today, Friday, as this year was marked by internal economic events, which, according to observers, gained confidence in the Turkish lira, and was manifested by the dismissal of the president. Turkish Central Bank Governor Naci Iqbal in March and the appointment of Shihab Kavcioglu, after he dismissed in November 2020, Governor Murat Uysal, who was appointed in July 2019 following the dismissal of Murat Çetinkaya.
But Turkey’s continuation to reduce the interest rate was the direct cause of the decline in the exchange rate of the lira. After cutting the interest rate by 100 points on September 23, the Central Bank’s Financial Policy Committee continued to reduce the rate last October by 200 points, bringing the price to 16% before it came in Last November 18, the recent reduction of the interest rate to 15% and the collapse of the lira from about 10.4, which prompted the Central Bank to directly intervene and sell dollars in the markets, after the ineffectiveness of other monetary tools in restricting loans, following up on exchange companies, and forming an investigation committee for the reasons for the decline in the exchange rate Turkish currency.
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