ANKARA - Central Bank announced on Wednesday that it suspended foreign exchange buying auctions as of October 23.
Central Bank issued a statement the same day noting that the auctions were suspended because of the volatility seen in foreign exchange market due to the recently observed decline in the foreign exchange supply.
''Considering that strong reserve position would boost the market's confidence in the current program and observing the excess foreign exchange supply, the Central Bank of Turkey has been conducting daily foreign exchange buying auctions since 6 May 2003,'' Bank recalled. Central Bank stated that it issued a statement on October 20, 2003 noting that ''it was also announced that the Central Bank might, with a prior notice, make changes in the amounts of daily auctions and/or optional selling due to unexpected developments in the excess foreign exchange supply. The Central Bank may, with a prior notice, suspend the auctions before the end of the period in the cases where the depth of foreign exchange market is lost and excessive volatility is observed in exchange rates due to an exogenous shock or unpredictable developments.''
Central Bank noted that it decided to suspend the auctions as of October 23, adding that the auctions would start again when there was an increase in foreign exchange supply.
''As usual, the Central Bank will continue to closely monitor the volatility in exchange rates and will directly intervene in the market in case of an excessive volatility in both directions,'' it was noted.
(ÖŞ-AY) 22.10.2003