Turkey’s Lira Poised for Steepest Monthly Rout in Two Years
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The latest funding tweaks by Turkey’s central bank couldn’t stop the lira from hitting a record low as the currency headed for its steepest monthly decline since a rout two years ago.
The decision to end access to liras from the cheaper Borsa Istanbul repo market is the latest step in the regulator’s bid to tighten policy and bolster the Turkish currency without resorting to an outright policy-rate hike. The move to cease funding at 11.75% will lead to a higher lira borrowing cost by forcing lenders to rely more on the central bank’s late liquidity window.