Oct. 6 (Bloomberg) -- Turkey’s central bank will sell as much as $1.35 billion, equalling the offer it made to banks yesterday, to help curb the lira’s decline. The lira and bonds surged.
The central bank will sell the dollars in an auction today, according to a written statement to Bloomberg. It sold $750 million to banks yesterday after the lira declined to a record low of 1.9096 per dollar on Oct. 4.
The lira rose 1.3 percent to 1.8437 per dollar at 11:04 a.m. in Istanbul, heading for the biggest increase in six weeks. Yields on two-year benchmark bonds fell 6 basis points to 8.48 percent.
Policy makers have intensified their support of the lira after it sank more than 17 percent against the dollar this year, the second-worst performer among 25 emerging-market currencies tracked by Bloomberg after South Africa’s rand.
Today’s offer, if sold in full, would increase the total amount of foreign reserves used by the central bank for intervention to $5.3 billion since Aug. 5. The central bank had $85.6 billion in foreign currency reserves, excluding gold, as of last week, dwarfed by Russia’s $526 billion in foreign currency and gold.
--Editor: Mark Bentley
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