ANKARA (AA) - Turkish Central Bank has today (Friday) directly intervened in the markets by buying foreign currency in order to prevent excessive fluctuation in exchange rates.
Issuing a written statement, Central Bank said that it earlier announced in several press releases that ''under the floating exchange rate regime, the level of exchange rate is determined by supply and demand conditions of the currency markets, the volatility of the exchange rate is being closely monitored by the Central Bank, and it may directly intervene in the markets in the event of excessive volatility that might occur in either direction.''
''Recently, excessive volatility has been observed in foreign exchange rates due to the increased supply of foreign exchange, particularly when the excessive fluctuation of New Turkish lira (YTL) against USD and the recent appreciation of USD in the international markets are taken into account. Therefore, in order to prevent extreme fluctuations in exchange rates, the Central Bank has today directly intervened in the markets by buying foreign currency,'' it was noted.
Previous intervention of Central Bank in the foreign exchange market was on March 9th, 2005.
(֓-MS)
2005-06-03