ANKARA
The Turkish lira/U.S. dollar rate rose to 2.292 on Wednesday towards noon, reaching the highest value since January 27 just before the Central Bank of Turkey intervened to stop a slide in value of the lira on January 29.
On January 29, the Central Bank of Turkey intervened in the markets and introduced sharp interest rate hikes to prevent a slide in the value of the Turkish lira.
The U.S. dollar buying rate rose to 2.295 Turkish lira at 11:05 am (09:05 GMT) on Wednesday and the selling rate was 2.289 lira.
The U.S. dollar on Tuesday was changing hands with the buying rate from 2.2780 lira and selling at 2.2786.
On September 26, Turkey’s Central Bank announced it would increase the daily foreign exchange auction amount on Monday to $40 million from a minimum of $10 million.
“Due to heightened volatility observed in exchange rates, the daily foreign exchange selling auction amount will be increased,” the bank said.
The central bank also left interest rates on hold in its last monetary policy committee meeting amid anticipation of earlier-than-expected U.S. interest rate hikes and recent adverse economic figures in Turkey, maintaining its tight monetary policy to hold the value of the Turkish lira in check.
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