US dollar drops below TL 3.50
The U.S. dollar Tuesday has fallen below the 3.50 threshold against the Turkish lira for the first time since Dec. 1. The dollar went down to 3.4919 by 3:10 p.m. local time (12:10 GMT). The drop came after the Central Bank of the Republic of Turkey (CBRT) issued a statement saying that the inflation rate forecast would be held at 7.5 percent.
Speaking at a press conference about the bank's 2017 monetary and exchange-rate policy, Central Bank Governor Murat Çetinkaya said Turkey's economic activity has been recovering in the last quarter of 2016, while fluctuations in the Turkish lira will not make a "durable" impact on the economy.
Çetinkaya announced that the CBRT would hold its year-end inflation forecast at 7.5 percent, citing a favorable outlook for food prices and a moderate domestic demand despite foreign exchange volatility.
"The bank will continue to support financial stability while aiming to keep inflation close to the target," he said. "We will continue to support the local currency as the medium of exchange in economic activities," Çetinkaya said, backing the Turkish lira.
On Sunday, President Recep Tayyip Erdoğan stated that Turkey had taken steps to carry out its foreign trade in its national currency. "If we buy something from them [foreign countries], we will do that in their currency; if they buy something from us, they will do it in our currency," Erdoğan said, adding that Turkey will "play its own game" in the economic arena against "all the games" played against it.
On Friday, the president called on Turkish citizens to convert their foreign exchange savings into Turkish lira and/or gold to help boost the value of the local currency.
Speaking at a press conference about the bank's 2017 monetary and exchange-rate policy, Central Bank Governor Murat Çetinkaya said Turkey's economic activity has been recovering in the last quarter of 2016, while fluctuations in the Turkish lira will not make a "durable" impact on the economy.
Çetinkaya announced that the CBRT would hold its year-end inflation forecast at 7.5 percent, citing a favorable outlook for food prices and a moderate domestic demand despite foreign exchange volatility.
"The bank will continue to support financial stability while aiming to keep inflation close to the target," he said. "We will continue to support the local currency as the medium of exchange in economic activities," Çetinkaya said, backing the Turkish lira.
On Sunday, President Recep Tayyip Erdoğan stated that Turkey had taken steps to carry out its foreign trade in its national currency. "If we buy something from them [foreign countries], we will do that in their currency; if they buy something from us, they will do it in our currency," Erdoğan said, adding that Turkey will "play its own game" in the economic arena against "all the games" played against it.
On Friday, the president called on Turkish citizens to convert their foreign exchange savings into Turkish lira and/or gold to help boost the value of the local currency.