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Politics, religion, and culture where East meets West

TCMB intervention

with 2 comments

Turkish Lira Rises on Rate Hike
Prabha Natarajan; The Wall Street Journal; Jan. 28th, 2014

Turkey’s currency surged after the country’s central bank aggressively hiked key interest rates, a move that revived confidence in other battered emerging-market assets.

Within minutes of the announcement, the Turkish lira strengthened 3% against the dollar—a big move in foreign-exchange markets. That brings gains in the lira to almost 10% since the currency hit a record low Monday. In recent trade in New York, one dollar bought 2.1867 lira, compared with 2.2522 late Monday, according to data provider CQG.

After an emergency policy meeting Tuesday night, Turkey’s central bank said it is raising its overnight lending rate to 12% from 7.75%.

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Written by M. James

January 29, 2014 at 3:45 am

Posted in News, Politics, Turkey

Tagged with , ,

2 Responses

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  1. I think we’re back to 2.26 or so. Ouch.

    Luc Issa

    January 30, 2014 at 11:11 am

  2. Someone recently described the interest rate hike as “using a sword to fight off a barrage of artillery.”

    M. James

    January 30, 2014 at 12:40 pm


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