The Central Bank Of Turkey Is Making Necessary Adjustments To Strengthen The Lira
As the elections approach the year 2023, the central bank of Turkey has made necessary preparations to stabilize the local currency.
Turkish Central Bank Gives Finishing Touches
As the elections are approaching, the central bank has started to make necessary adjustments to the reserve-management system. In the process, the value of the Turkish lira seems to have stabilized.
As the elections are to take place in the year 2023, the value of the lira becoming firmer is a good sign for the country’s economy.
To ensure that the lira is stabilized, the central bank has worked alongside the Turkish government to introduce many regulations. To be precise, over 100 regulations have been introduced to achieve the goal.
Statement by the Officials
The officials have recently issued a statement where they revealed how they have tried stabilizing the lira and the economy.
It was just a year back when the Turkish lira suffered the worst historic crash. It is something that Turkey does not want to suffer in the future.
To deal with the problem, the policymakers came up with a new policy that turned out to be effective against the lira crash.
However, the policy mainly relies on multiple sources that include foreign homebuyers, export revenues, and other sources in order to generate foreign funds.
With the new policy, they have been able to create a fine balance between the demand and supply in the local and international markets.
New Policy is Very Effective
In the past, the central bank of Turkey had to rely on its own reserves if it wanted to boost or stabilize the price of the lira.
Now the situation has changed and the central bank does not have to do something like Japan to boost their lira’s price. Instead, the price adjusts itself as they continue optimizing the supply and demand in the market.
According to the calculations made by the bankers, the central bank has helped the country bring in about $100 billion from international platforms.
This is the amount that the central bank has gathered in the year 2022 alone, which proves that the policy is working quite well.
Despite the constant fluctuations in the international market, the Turkish lira has not lost ground against the dollar.
Even after the fluctuations, the value of the lira has remained firm against the dollar. Throughout the month of October, the lira continued trading at around 18.6 against the dollar.
The economists expect that the lira would continue trading around the same price as the dollar in the month of November.
It is worth mentioning that in the entire year, the lira’s value has dropped 29%. However, from the month of August until now, the lira has dropped only 3%.