Turkey’s lira dips 2%; cenbank says it will monitor forex risks

The Turkish lira weakened as much as 2.6% on Wednesday, eating further into the huge gains made the previous week, as worries persisted over soaring inflation and unorthodox monetary policy.

There was market little reaction to the central bank’s (CBRT) 2022 policy document, in which it said it will monitor risks related to the foreign exchange market and do what is necessary to ensure it runs smoothly.

The lira slipped as far as 12.11against the dollar and traded at 12.03 by 0742 GMT. Despite surging more than 50% last week following state-backed market interventions, it has lost 39% of its value this year.

“The CBRT has no commitment to any exchange rate level and will not conduct FX buying or selling transactions to determine the level or direction of the exchange rates,” the bank said.