Dollar exchange rate in Turkey falls

Photo: Dollar exchange rate in Turkey falls / Finance

Baku, Azerbaijan, Jan. 29
By Rufiz Hafizoglu - Trend:

After an attempt by Turkey's Central Bank to stop further depreciation of the national currency, the dollar exchange rate dropped by 3.3 percent to 2.2658 lira, the Central Bank said in its statement released on Jan.29.

Yesterday Turkey's Central Bank raised three key interest rates to stop further depreciation of the lira.

According to the information, the one week repo rate was raised to 10 percent from 4.5 percent

In addition, the bank raised its lending rate to 12 percent from 7.75 percent and its borrowing rate to eight percent from 3.5 percent.

Earlier Turkey's Central Bank ploughed at least $2 billion into the foreign exchange market to shore up the currency, but the attempt was unsuccessful.

The Turkish lira hit a record low value against the dollar despite the Central Bank's efforts.

Earlier Turkish Deputy Prime Minister Ali Babacan said the increase in the dollar's exchange rate in Turkey is a temporary situation. Currently, the appreciation of the U.S. currency is observed not only in Turkey, but also in Russia and Latin American countries, according to Babacan.

The deputy prime minister stressed that the depreciation of the national currency will not affect the country's economy.

Translated by M.L.

Edited by S.M.

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