"Turkish Central Bank May Sell Dollars After Interest Rate Cut Weakens Lira
By Steve Bryant and Selcuk Gokoluk - Aug 5, 2011 8:50 AM ET
Turkey’s central bank has $93 billion to defend a currency whose slide is accelerating after a surprise rate cut. Photographer: Kerem Uzel/Bloomberg
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Turkey’s central bank began dollar sales today with $93 billion available to defend a currency whose slide accelerated after a surprise rate cut.
The bank sold $50 million in an auction, receiving $91 million of bids, and said future sales may be larger to help protect the lira. The currency plunged to a two-year low after the central bank reduced its benchmark yesterday, citing the risk of a recession imported from Europe. The lira pared losses, adding 0.3 percent to 1.735 per dollar at 3 p.m. in Istanbul. "
More:Turkish Central Bank May Sell Dollars After Interest Rate Cut Weakens Lira - Bloomberg
