Turkish lira weakens to record 48.5 per USD in September
The Turkish lira weakened to a record low of 48.5 per USD in September, maintaining a controlled, slow devaluation rate. The TCMB held its key policy rate unchanged for the fifth straight decision and continued selling liras in the open market to maintain the pace.
5 per USD in September, while the Central Bank of Turkey continued its controlled, slow devaluation approach and intervened in FX markets to limit the decline. The TCMB kept its key policy rate unchanged for a fifth straight decision in September, as expected. It said leading indicators pointed to a slowdown in underlying inflation in recent months, though that was offset by higher inflation risks from the escalation in the Middle East war. The central bank also kept selling liras in the open market to sustain the steady devaluation pace.
Policymakers also played down any imminent return to one-week repo auctions, which have been suspended since March and have forced financial institutions to use the more expensive overnight rate.