The Central Bank of the Republic of Turkey (CBRT), which funds the market with an 8 percent interest rate in a weekly repo auction, did not go to auction this week due to continuing tensions in foreign exchange.

A quick drop in the dollar attracted notice following the decision.

The CBRT did not open the weekly repo auction on Thursday and according to CBRT sources, the fact that this week's repo auction was not opened means a stricter stance in the liquidity's policy.

The same sources pointed out that the market-maker banks can turn to the "Late Liquidity Window" with this tightening, thus increasing the cost of funding.

"Its aim is to limit the hike in exchange rates by increasing the cost of the Turkish lira. The Central Bank can use all its instruments in the coming days," the sources said.

The last time the CBRT did not open the one-week repo auction was in January 2014.

Meanwhile, the CBRT gave TL 5 billion ($1.32 billion) to the market on Wednesday with the repo auction dated Jan. 18 held with the amount method.

The U.S. dollar-TL parity fell from the 3.93 level to the 3.8050 level after the Central Bank skipped the one-week repo auction.