The Central Bank of Turkey finally broke their silence after four days of rapid exchange rate increases. When the dollar reached the 1.8250 level yesterday, the Central Bank finally spoke out announcing it would begin to hold exchange sale tenders as of today. The Central Bank announced that they found the increase in the US dollar rate to be 'speculative' and therefore would begin to launch exchange rate sales tenders. The Central Bank emphasized, that it they are unsatisfied with the results from the tenders, they may turn to direct intervention in exchange sales. After the announcement, the dollar initially went down to 1.81, and then later to 1.80 as a result of the recovery experienced in the stock market. After the dollar's record rise on Friday to 1.80 TL, yesterday a new record was broken when the dollar went on to surpass the 1.82 level, resulting in the Central Bank announcing plans to step in. The Central Bank of Turkey announced they plan to hold a 50 million US dollar foreign exchange tender. The response to the announcement was positive as later the dollar once again settled at the 1.80 level.
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