Turkey: The Central Bank of Turkey designs a mechanism to mitigate FX volatility
Published on Tuesday, November 14, 2017 | Updated on Tuesday, November 14, 2017
Turkey: The Central Bank of Turkey designs a mechanism to mitigate FX volatility
Summary
The CBRT announced yesterday they will start to auction foreign exchange (FX) hedging instruments to enhance tools to manage corporates’ currency risk. We elaborate the main goal of the new tool as to reduce the Turkish lira volatility by both enhancing liquidity and increasing financial depth in the currency market.
Geographies
- Geography Tags
- Türkiye
Topics
- Topic Tags
- Macroeconomic Analysis
Tags
- Tags
- Inflation
- Monetary policy
Authors
Seda Guler Mert
BBVA Research - Chief Economist
Alvaro Ortiz
BBVA Research - Head of Analysis with Big Data
Deniz Ergun
BBVA Research - Senior Economist
Ali Batuhan Barlas
BBVA Research - Principal Economist
Carlos Serrano
BBVA Research - Chief Economist
Documents and files
Report (PDF)
Turkey-The-Central-Bank-of-Turkey-designs-a-mechanism-to-mitigate-FX-volatility
English - November 14, 2017