The central bank of Turkey has suspended planned repo auctions in an attempt to counter the sharp fall of the lira. The move means the average cost of funding from the bank’s benchmark one-week repo rate of 24% will now gradually rise to the overnight lending rate of 25.5%. The lira fell by 1% against the US dollar before the announcement to its lowest level since September last year. The currency's value fell by almost 30% in 2018 because of concerns the independence of Turkey's central bank had been jeopardised by the country's president, Erdogan.
The central bank of Turkey has suspended planned repo auctions in an attempt to counter the sharp fall of the lira. The move means the average cost of funding from the bank’s benchmark one-week repo rate of 24% will now gradually rise to the overnight lending rate of 25.5%. The lira fell by 1% against the US dollar before the announcement to its lowest level since September last year. The currency's value fell by almost 30% in 2018 because of concerns the independence of Turkey's central bank had been jeopardised by the country's president, Tayyip Erdogan.