The Turkish Central Bank has cut by half liquidity limits currently offered to primary dealers as part of open market operations, in order to support the Turkish lira in the face of volatility in the monetary markets experienced this week.
Central Bank Governor Murat Uysal, Banking Regulation and Supervision Agency (BDDK) Chairman Mehmet Ali Akben and the general managers of banks held a meeting following the excessive market volatility amid high fluctuations in the exchange rates occurring this week. The US dollar/lira exchange rate hit an all-time high of over 7.30 on Thursday evening. The cut in liquidity limits, which are to be effective as of August 10th, was announced by the Bank following this meeting.