Turkey’s Central Bank sells $75 billion in eight months
Turkish Central Bank has been selling dollars from the “back door” to restrain the increase in the foreign currency after the government failed to use instruments such as currency-protected deposits, income-indexed bonds and credit restrictions for companies with 900 thousand dollars of foreign currency.
Bloomberg Turkey and Sweden Economist Selva Baziki, said on her Twitter account, that foreign currency that the Central Bank sold to the market through the "backdoor" in the eight months of this year amounted to 75 billion dollars.
We estimate the Central Bank of the Republic of Turkey has intervened as much as billion in FX markets Jan-Aug.— Selva Baziki (@SelvaBaziki) September 14, 2022
That is .5 billion/month.
Interventions seem to have slowed down over the summer, partly due to tourism income.
More @TheTerminal https://t.co/ctGd2ji9Oo pic.twitter.com/tgYFj4j0B3
In other words, the central bank intervened in the market by selling an average of $9.5 billion every month to prevent the rise in exchange rates. Baziki, in a previous post on August 5, had said that the seven-month figure was 66 billion dollars.