Ankara, Nov 24, : The Central Bank of the Republic of Turkey said it will continue to implement a floating exchange rate.It also stated that it has no commitment to “any exchange rates level” because the lira plunged to a record low in forex markets. According to Xinhua news agency, the CBRT stated in a written statement that exchange rates are determined according to supply and demand conditions.
It stated that “Under certain circumstances, the central bank may only interfere in excessive volatility without aiming at any permanent direction.”
The bank also stated that the dramatic fluctuations in Turkish forex markets are not related to the country’s economy.
The bank stated that unhealthy price formations in FX markets are being observed that are unrealistic and totally detached from economic fundamentals.
CBRT “deemed it necessary” to warn citizens and companies about “possible loss by trading at values completely disconnected from economic fundamentals under extremely volatile markets conditions”.
The exchange rate of the Turkish currency against the US dollar was down nearly 10% on Tuesday.
It recovered some of its losses in the late afternoon.
Recep Tayyip Erdan, President of Turkey, stated late Monday that Turkey is in a “war for economic independence”.
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