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    Turkey's CB: Forex depot market averts fluctuation

    HotNewsTurkey Staff
    19.10.2008 - 16:52 | Son Güncelleme:

    The Turkish Central Bank, being an intermediary for the foreign currency liquidity, has averted fluctuations in the markets, Durmus Yilmaz, the governor of the bank said on Sunday.

    The central bank recently announced reactivating the forex depot market in which the bank was the financial intermediary and regulator, in order to maintain confidence in the system and sustain foreign currency liquidity in the market.

     

    This model is not used very widely in the world, however it is implemented effectively in Turkey, Yilmaz told Anatolian Agency.

     

    The central bank also suspended daily dollar buying auctions as of Thursday to enhance the liquidity conditions of banks.

     

    The U.S. Federal Reserve was implementing "discount window" practice in order to solve the liquidity but it was not working effectively since the big banks and financial institutions were stepping back from taking advantage of this opportunity so as not to be regarded as weak, he added.  

     

    This infectivity causes the liquidity problem grow, he added.

     

    Photo: AA

      

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