CBRT asked banks to increase foreign exchange forward cost

The Central Bank of the Republic of Turkey asked banks to increase their costs in foreign exchange forward contract sales in order to reduce the demand for foreign exchange.

According to sources close to the subject who spoke to Bloomberg, the CBRT asked banks to increase the interest rate on dollar forward contracts from 30 percent to 40 percent.

Sources indicate that the CBRT’s contribution from banks to individual customers is 19.05 under He demanded not to sell dollars and not to sell foreign exchange forward contracts to individual customers.

After the earthquake disaster, authorities stepped up measures to curb the demand for dollars and gold.

With inflation peaking at 85 percent last year, officials focused on keeping the lira as stable as possible. While the lira lost 30 percent of its value against the dollar last year, this year’s loss is less than 1 percent.

In order to mitigate the effects of the earthquake, after the decision to temporarily suspend the import of gold against goods (forward), the CBRT asked the banks to set a minimum spread in gold sales to their domestic customers.