The Central Bank (MB), which lost its independence due to political pressures and made interest rate cuts in line with the ‘interest cause inflation result’ policy of AKP President Recep Tayyip Erdoğan, is living a fiasco after a fiasco. Striking allegations were made regarding the CBT’s method of combating the rapidly rising exchange rate.
Bloomberg economist Selva Baziki made an assessment of the Central Bank, which is claimed to frequently sell dollars. Baziki claimed that the Central Bank sold 75 billion dollars in the last 8 months to suppress the rising exchange rate. Thus, the market was intervened by selling 9.5 billion dollars monthly.
Baziki, in his post on August 5, said that the 7-month figure was 66 billion dollars. Baziki also stated that interventions slowed down during the summer months due to tourism revenues.
We estimate the Central Bank of the Republic of Turkey has intervened as much as $75 billion in FX markets Jan-Aug.
That is $9.5 billion/month.
Interventions seem to have slowed down over the summer, partly due to tourism income.
— Selva Baziki (@SelvaBaziki) September 14, 2022