Turkey’s central bank sold $3.12 billion during its direct market intervention on Dec. 13 to support the ailing lira, the lender said Monday.
The latest amount brought the total value of the Central Bank of the Republic of Turkey (CBRT)’s first four such efforts last month to $5.155 billion.
Citing “unhealthy price formations,” the central bank announced five direct interventions to support the lira earlier in December.
The lira hit a record low of 18.4 against the dollar in December before rebounding sharply the week before last after President Recep Tayyip Erdoğan announced a scheme to safeguard lira deposits against currency volatility.
The lira surged some 50% in the week after the announcement of lira deposits protection plan.Under the scheme, the CBRT and the Treasury would reimburse losses on converted lira deposits against foreign currencies.