26.03.2025 08:20
The Central Bank President Fatih Karahan stated during a video conference with foreign investors that he would reveal the amount of foreign currency sold day by day following the corruption and terrorism investigation conducted against the Istanbul Metropolitan Municipality (IBB) on Wednesday, March 19. President Karahan mentioned that a total of 25 billion dollars was sold on Wednesday, Thursday, and Friday.
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The video conference meeting organized by the Ministry of Treasury and Finance with international investors was attended by Minister Mehmet Şimşek and the President of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan.
In the meeting, which attracted significant interest from foreign investors, President Fatih Karahan evaluated the developments in the market following the corruption and terrorism investigation conducted against the Istanbul Metropolitan Municipality on Wednesday, March 19, and answered questions.
"WE HAVE TAKEN MARKET-FRIENDLY STEPS"
According to the news in Ekonomim, Fatih Karahan stated that they would do everything necessary to calm the turbulence in the markets, emphasizing that the turbulence is temporary and that they have taken market-friendly steps.
REVEALED HOW MUCH FOREIGN CURRENCY THE CBRT SOLD
Karahan shared information with foreign investors regarding how much foreign currency the Central Bank sold to prevent the market turmoil during the first three days of the investigations against the Istanbul Metropolitan Municipality. According to sources attending the meeting, on the first day of the operation, namely Wednesday, March 19, the Central Bank sold 10 billion dollars. On Thursday, March 20, 3 billion dollars were sold, while the highest demand from the market came on the third day, Friday, March 22. On Friday, the Central Bank sold 12 billion dollars. According to the figures provided by Fatih Karahan, the Central Bank sold a total of 25 billion dollars in 3 days. CBRT President Karahan added that this sale calculation could also be made by the market.
'DEMAND FOR FOREIGN CURRENCY BY LOCALS HAS DECREASED'
In response to a question about whether dollarization would continue, Fatih Karahan stated, "According to our research, the decisions of locals change based on the volatility in the foreign exchange market and the return of the Turkish Lira. The initial acceleration in local demand increased due to current developments, but later, with the rise in returns and the decrease in exchange rate volatility, the demand for foreign currency has decreased."
In response to a question about whether Turkey's real effective exchange rate-based disinflation strategy would continue, he replied:
"The CBRT's disinflation strategy is not dependent on the exchange rate. Supply and demand factors play a significant role here. As demand conditions improve, we will see better results in inflation. There has been about a 4% monthly depreciation in the currency basket. You can calculate the impact on inflation with a pass-through of around 30-40%."
CBRT President Karahan emphasized that the CBRT continues to make decisions on a meeting basis during the meeting with foreign investors, highlighting that an interim meeting is a necessity.
The Ministry of Treasury and Finance stated in a press release regarding the video conference, "Approximately 4,500 investors from North America, the United Kingdom, other European countries, and the Middle East showed great interest in the one-hour meeting."
EXCHANGE RATE STABILIZED
Following the developments, the dollar/TL exchange rate tested the 42 level on Wednesday, setting a new record. With the intervention of the CBRT, the exchange rate declined again and stabilized around 38. As of today, the exchange rate continues to move sideways.
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