Turkish central bank intervenes in Lira

The Turkish Lira has started 2012 with record lows against the greenback, thus hurting the major export community. Turkeys central bank was forced to sell dollars to try and bring the Lira back to respectable figures as inflation is rocketing the country.

The central bank sold over $2 billion dollars on Friday (30th December) and $300 million yesterday (2nd Jan 2012). Turkey currency was one of the words performers of 2011 as it has fallen over 18% against the US dollar.

Turkey appointed a new central bank governor who changes interest rates on a daily basis to try to manage Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.

Since July 2011, Turkish central bank has intervened on several occasions and has spent over $11 billion of its reserves.

Forexmagnates team have compiled a detailed report on the state of FX in Turkey post regulations available in the next quarterly report.

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