Turkey’s central bank sold a record amount of foreign currency on Wednesday after the lira fell more than 12% following the detention of Istanbul’s mayor, according to three bankers.
They said Turkey’s central bank sold at least $5 billion in foreign currency on Wednesday, but some estimated the figure could have reached $10 billion in a day.
Reuters notes that the Central Bank of Turkey declined to comment.
The central bank did not directly intervene in the exchange rate, but the transactions it carried out using existing methods of buying and selling foreign currency through state banks showed record levels of foreign currency sales, bankers said.
The exchange rate of the US dollar to the Turkish lira reached 38.34 lira per dollar.
On Wednesday, March 19, the US dollar to Turkish lira exchange rate jumped by 11.99% and reached 41.1 lira per dollar. The dollar rate rose above 41 lira for the first time in history.
Turkey’s assets fall as police arrest Istanbul Mayor Ekrem Imamoglu.
Turkish stocks also fell, with 10-year government bond yields rising to their highest this year. The benchmark Borsa Istanbul 100 index fell 6.9%, prompting a halt in trading.
The Turkish lira has hit a new historical low – the dollar has reached 37 lira for the first time, foreign media reports.
At the same time, the Istanbul Stock Exchange index fell by 6.87% at the opening amid news of the arrest of Istanbul Mayor Ekrem Imamoglu on suspicion of corruption.
Today, Turkish police detained Imamoglu and his assistant Murat Ongun.
