The Central Bank of the Republic of Turkey tightened monetary policy today (May 9) as the Turkish lira continued to weaken.
The CBRT said it was suspending one-week repo auctions indefinitely. It said it was “considering the developments in financial markets”. Since May 5, the lira has lost 4.4% of its value against the US dollar, hampering authorities’ efforts to tame inflation.
The measure prevents banks from borrowing at the CBRT’s lowest rate of 24%, and forces them to borrow instead at