Central Bank of Turkey cautions firms, people of “unrealistic” cost creations
(MENAFN) On Tuesday the Turkish Central Bank criticized “unhealthy” and “unrealistic” cost creations in the foreign exchange markets while noting its instability, stating they are totally separate from economic basics.
Turkey’s Central Bank expressed in a statement, “implements a floating exchange rate regime and has no commitment to any exchange rate level."
It also added, "exchange rates are determined by supply and demand conditions according to free market dynamics. Under certain conditions, the Central Bank may only intervene in excessive volatility without aiming (in) any permanent direction."
The bank stated that it found it important to caution firms and locals against probable losses via exchanging at values totally separated from economic fundamentals under very instable market circumstances.
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