Turkey’s central bank takes guard on falling lira

Central Bank of Turkey takes precautionary measures on weakening lira as it falls on security concerns on Turkish border

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

The Turkish lira climbed down to 2.74 against the US dollar on Friday after Turkish F-16 fighter jets hit three previously determined ISIS targets on Syrian soil earlier in the day. 

Turkey’s central bank was quick to intervene to support the weakening lira with a slight adjustment. The bank says it has reduced the foreign exchange deposit short term interest rate from 3.5 percent to 3 percent for dollar deposits, a move which relieved some of the pressure on the lira.

According to defence officials, Turkey on Thursday reached an agreement with the US to allow its strategic Incirlik air base’s use for air strikes against ISIS.

Turkish media outlets reported that Turkey gave permission to provide the Incirlik air base as a location to launch air strikes.

TRTWorld and agencies