Turkey cenbank ups lira repo funding for first time in 3 months
ANKARA, March 1 (Reuters) -The Turkish central bank increased on Friday the amount of funding in the repo auction for the first time in three months.
It injected 10 billion lira ($319 million) in its repo auction maturing on March 8 at a rate of 45%, while bids stood at 41.5 billion lira.
Since Dec. 4, the central bank had been opening daily 1 billion lira repo auctions by the quantity method.
Repo funding constitutes a very limited amount of central bank funding. Rather it is using swap transactions, which stood at around $44 billion as of Thursday, for nearly all banking system funding.
On Thursday, bankers told Reuters that the central bank could provide more funding through open market operations, including repo auctions, after the excess lira liquidity decreased in the banking sector.
($1 = 31.3360 liras)
Reporting by Nevzat Devranoglu; Editing by Jonathan Spicer
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
