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The Central Bank of the Republic of Turkey reduced the upper limit of exchange rate opportunity from 55 percent to 45 percent and made 2.2 billion dollars available for the use of banks today (May 7).
This 2.2-billion-dollar move of the Central Bank has pushed back dollar by 0.01 Turkish Lira, seeing a decrease from 4.27 to 4.26 TRY. As of 2.50 p.m. today, exchange rate of dollar bounced back to 4.27 TRY from 4.26 TRY.
The Central Bank has made the following statement:
"As part of the reserve option mechanism, the upper limit of exchange rate opportunity has been reduced from 55 percent to 45 percent and the segment ranges have been specified as follows (in the table, coefficients based on segments are included). With the related change, a liquidity of approximately 6.4 billion Turkish Lira will be recalled from the market and around 2.2 billion US dollar will be made available for the use of banks." (ŞA/SD)