By Muhammed Ali Gurtas
ISTANBUL (AA) - Turkey's Central Bank made liquidity arrangements on Tuesday on the interbank market to suppress recent fluctuations in foreign exchange markets.
"Banks’ borrowing limits at the Central Bank of the Republic of Turkey Interbank Money Market for O/N transactions have been reduced to zero to be effective as of 22 November 2017," the bank said.
"To be effective from the same date, banks’ limit for the intraday liquidity facility will be increased to twice the size of Interbank Money Market borrowing limits valid on 21 November 2017," it added.
The Central Bank's action came after the USD/TRY rate set a new all-time record by climbing to nearly 3.97 as of 10.00 a.m. local time (0700 GMT) on Tuesday.
At the currency markets opening' on Tuesday, the U.S. dollar/Turkish lira exchange rate rose to 3.9490, compared with Monday's close at 3.9180.
According to Turkey's Central Bank, the 10-month average exchange rate was 3.61, while last year one dollar traded for 3.02 lira on average and for 2.71 lira in 2015.
On Saturday, the bank decided to launch Turkish lira-settled forward foreign exchange sale auctions, planning to reach a $3 billion -- maximum -- total amount of foreign exchange sale position by the end of this year.