Central bank sells $350 mln in forex auction

Published 07.10.2011 12:39
Updated 07.10.2011 12:40

Faced with year-to-date lira losses of almost 20 percent to the dollar and rising inflation, the central bank this week mounted its most aggressive defence of the currency yet, selling a record $1.1 billion (715,000 pounds) on Wednesday and Thursday and making changes to banks' reserve requirements.

The action succeeded in lifting the lira well off record lows. But any further FX interventions will put Turkey in serious danger of depleting a reserve stash that is its primary buffer against a large balance of payments deficit.

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