Dollar Climbs As The Central Bank Takes Measures To Slowdown

- Dollar rose by around 4 kurush to over 2.7220 lira, after the Central Bank's decision to keep the policy rate unchanged, despite the its measures to slowdown lira depreciation, on Wednesday.

Central Bank of Turkey's Monetary Policy Committee (MPC) has decided to keep the policy rate unchanged at 7.50 percent, as expected.

The Central Bank has taken two more important measures to stop lira depreciation against major currencies like dollar and euro.

The Central Bank's remuneration rate for the required reserves maintained in Turkish liras has been raised by 50 basis points, to start as of the 8 May 2015 maintenance period.

"In line with global interest rate developments, the rates applied to banks' one week maturity borrowings from the Central Bank have been reduced from 4.5 percent to 4 percent for dollar and from 2.5 percent to 2.0 percent for euro, effective from 24 April" the Central Bank said in a statement.

Dollar soared to 2.7220 lira rapidly after the decisions came, from 2.6850 lira it was before the rate decesion released, while euro rose over 2.90 lira to 2.9267 lira over the same period. Main index at Borsa Istanbul fell to 83,997 points, down from 84,707 points, due sales in the stocks.