The Turkish lyra moved upwards after the increase of interest rates from 15 to 17% !!!
New central bank governor Naci Agbal took on double-digit inflation, a weakened lyra and depleted foreign exchange reserves to stabilize it, the real tightening of monetary policy was somewhat symbolic.
In fact, it brought the reference rate to the average cost of financing the central bank at that time.
The new governor pledged to tighten monetary policy and increase the bank's holdings in foreign assets without derailing the local currency!
Turkey seems to finally have a "normal" and "professional" central bank officer. They need to have a more professional approach to monetary policy and not use it as a tool for short term gains.
I wish everyone a Merry Christmas with health and happiness!
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