Bloomberg News

Lira Pares Gains After Central Bank Cuts Daily Dollar Sale

September 28, 2011

Sept. 28 (Bloomberg) -- The lira pared gains against the dollar after the Turkish central bank reduced the amount of foreign exchange it plans to sell today to $100 million from $280 million yesterday.

The lira appreciated as much as 0.3 percent today and erased its gain to trade little changed at 1.8487 per dollar at 11:27 a.m. in Istanbul.

The central bank’s $280 million sale for lira yesterday was the second-biggest amount since it began the auctions on Aug. 5 to shore up the lira, the world’s worst-performing emerging market currency this year.

The bank “is playing too much with the sale figures and this is irking the market,” Eren Yardimci, a currency trader at UBS AG in Zurich, said in response to e-mailed questions.

“The euro-dollar basket has hardly changed today compared to yesterday and for that reason the market was expecting a figure around $200 million,” Yardimci said.

The lira has depreciated 16 percent against the dollar this year, as a widening current-account deficit and worsening debt crisis in Europe hurt investor confidence in the country’s financial stability.

Yields on the two-year benchmark bond rose 2 basis points, or 0.02 percentage point, to 8.45 percent, according to the RBS Istanbul Benchmark Bond Index.

--Editors: James Kraus, Alan Purkiss

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at

To contact the editor responsible for this story: Gavin Serkin at

Best LBO Ever
blog comments powered by Disqus