Istanbul--Turkey's central bank on Tuesday said it would consider measures to support the embattled lira as the currency tumbled to a new low in value against the dollar pressured by domestic jitters ahead of June 7 elections.
The lira hit the new record low in value against the dollar of 2.68 to the greenback but rallied somewhat following the statement from the central bank.
The bank took the hugely unusual step of publishing the agenda of its next monetary policy meeting on April 22 which will include measures to support the lira, including a cut in foreign exchange deposit lending rates.
"Other measures to support stability in financial markets will also be considered if deemed necessary," it said.
Following the statement, the lira rallied to 2.67, a loss in value of 0.05 percent on the day.
The lira, which has lost 11 percent of its value against the dollar since the end of January, is being pressured by strong economic data from the United States and expectations the Federal Reserve could hike interest rates at its next meeting.
Against a background of slipping growth and persistent inflation, concerns are also growing about the performance of the Turkish economy in 2015.
These have been amplified by President Recep Tayyip Erdogan's conflict with the central bank over the head of state's push to slash rates and worries about a shake-up in the economic team after the June 7 legislative polls.
William Jackson, economist at Capital Economics in London, said the "unusual decision" by the bank to publish its agenda shows it is "looking for ways to tighten monetary conditions and shore up the lira without incurring the wrath of President Erdogan".
Erdogan wants the bank to aggressively cut rates to kickstart growth ahead of the June 7 polls.
AFP
