Central Bank Suspends Repo Auctions as Dollar's Rise Cannot be Stopped

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Turkish lira's drop against foreign currencies continues with the main reasons for the that being the Supreme Election Council (YSK) verdict for a rerun in İstanbul municipal elections, the level of the Central Bank reserves, the relations with the US and the high dollarization.

The recent talks between the US and China and the tensions between the US and Iran also impact the price of the dollar.

Amid all these developments, one US dollar is exchanged for 6.25 liras while euro-lira rate reached 7. Price of one gram of gold increased to 258 liras, the highest in eight months. İstanbul Stock Exchange dropped to lower than 90,000 points. The Turkish lira lost 50 percent value in the last year.

The dollar-lira rate rose to levels of August-October period when the crisis was most intensely felt.

Central Bank suspended weekly repo auctions

After the sharp decrease in the value of Turkish lira, the Central Bank announced today (May 9) that it temporarily suspended the weekly repo auctions.

The Monetary Policy Committee (PPK) announced the weekly repo auctions interest rate as 24 percent after its meetings on January 16, March 6 and April 25. (HA/VK)