FAMAGUSTA GAZETTE – Türkiye’s central bank announced Thursday that it will begin conducting Turkish lira-settled foreign exchange forward-selling transactions.
The initiative aims to stabilize foreign exchange liquidity, prevent volatility in exchange rates, and ensure the smooth functioning of the market.
The decision follows sharp fluctuations in the foreign exchange market on Wednesday, during which the Turkish lira plunged by as much as 14.5% against the U.S. dollar before recovering slightly to a 7% decline. Treasury and Finance Minister Mehmet Simsek assured investors that Türkiye’s economic program remains intact, stating, “Everything necessary is being done for the healthy functioning of markets.”
The turbulence coincided with the arrest of Istanbul Mayor Ekrem Imamoglu and senior municipal officials, sparking concerns over political instability and its impact on the economy. The arrests were part of an investigation initiated by the Istanbul Chief Public Prosecutor’s Office.