CB cuts interbank borrowing limit to TL 11 bln to protect lira

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Turkey's Central Bank headquarters is seen in Ankara.

As a measure to halt the recent loss in value of the Turkish lira, the Turkish Central Bank decreased the borrowing limit of banks in the Interbank Money Market to TL 11 billion on Friday.

The new measure will be effective starting Jan. 16, said the bank in a statement issued on Friday.

The statement also noted that CB funding in repo markets within the Borsa İstanbul could be limited if necessary.

According to DHA, the central bank’s statement did not significantly change the picture of the foreign exchange market in Turkey, where the lira moved between 3.78 and 3.79 to the US dollar on Friday.

In a related move, President Recep Tayyip Erdoğan on Friday reiterated his call to people to change their foreign currency into Turkish lira.

Erdoğan had said on Thursday that the depreciation of the lira was the result of an operation targeting Turkey and that there is no difference between a terrorist holding a gun and one having foreign currency.

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