Dollar/TL currently trading at 8.13, having gained %1.42 for the day.
Business Recorder reports that Turkey’s newly-installed central bank governor, Sahap Kavcioglu, said on Thursday in his first call with investors that tight monetary policy would remain in place due to currently high inflation, according to three people on the call.
Two sources said that a senior bank official added on the call there would be no premature interest rate cuts, and that inflation was close to the upper bound of its forecasts.
President Tayyip Erdogan fired former governor Naci Agbal on March 20 in a shock move that sent the lira down 13% as investors predicted a quick pivot to loose policy, given Kavcioglu’s past criticism of Agbal’s tight stance.
Bloomberg’s version of the virtual conference is as follows
(Bloomberg) — Turkish Central Bank Governor Sahap
Kavcioglu said that the bank would consider continuity while
evaluating monetary policy in coming term during a presentation
to investors, according to person with direct knowledge of it.
* Kavcioglu emphasized necessity of tight policies, pledged to
commit to 5% inflation target
* Inflation-focused monetary policy will be the strongest weapon
against market fluctuations, Kavcioglu said