Central Bank to restart dollar purchases.

Turkey’s Central Bank said it will resume buying dollars through daily auctions starting August 4, taking advantage of a stronger lira to strengthen its reserves. The Bank will buy $30 million a day with an option to purchase an additional $30 million, it said in an e-mailed statement from Ankara on August 3rd.

Increasing capital flows has made the conditions right for the Central Bank to strengthen its reserve and signal its displeasure with the fiscal tightening that results from the strengthening of the lira. Purchasing this amount of dollars is an effort to maintain the current lira/dollar exchange rate and curb the lira’s recent rise at the expense of export competitiveness.

Source: Daily Hurriyet

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