Türkiye's Central Bank to end lira currency swap transactions

ISTANBUL

The Central Bank of Türkiye (CBRT) will terminate Turkish lira currency swap market transactions via the quotation method in a bid to diversify the sterilization tools.

According to the instructions sent to lenders, the decision will be effective as of Thursday.

The bank said sell side gold and currency swap auctions could be held within the scope of diversifying sterilization tools.

Sell side transactions refer to the CBRT's gold selling to banks against FX on the value date.

The CBRT conducts swap transactions to support lenders' lira and foreign exchange liquidity management.