US Dollar On The Rise Again Despite Interest Rate Hike by Central Bank

* Image: pixabay

Click to read the article in Turkish

The Central Bank of the Republic of Turkey (TCMB) raised its late liquidity window rate by 300 basis points from 13.5 percent to 16.5 percent yesterday (May 23) as a response to the increasing exchange rate of the US Dollar.

Following the Central Bank's interest rate hike, the exchange rate of the US Dollar to Turkish Lira fell from the level of 4.92 TRY to 4.55 TRY.

The marginal funding rate remained fixed at the level of 9.25 percent and the Central Bank borrowing rate of interest remained fixed at 7.25 percent.

With the opening of the markets, the US Dollar again reached the level of 4.65 TRY as of 10:30 a.m. today.

Erdoğan: Do not trade your local currency for foreign exchange

President and Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan stated that the developments in the financial markets have nothing to do with the economy of Turkey. Erdoğan also added,

"Please, do not trade your local currency for foreign exchange. We shall continue to act with our local currency. It is what being national is about, it is what being local is about and it is what being patriotic is about."

Yıldırım: The mobility in exchange rate is temporary

Speaking about the fluctuation in the exchange rate of the US Dollar to Turkish Lira and the Central Bank's decision to raise its late liquidity window rate, Prime Minister Binali Yıldırım said, "The mobility in exchange rate is temporary, it is also cyclical." (EKN/SD)