25.03.2025 10:11
Last week, following a series of record-breaking foreign exchange rates, the economic management tightened measures. In this context, the Central Bank initiated Turkish Lira non-deliverable forward (NDF) foreign exchange transactions to stabilize the foreign exchange markets.
The measures taken by the economic management regarding the money markets are being implemented one by one. The latest measure came from the Central Bank of the Republic of Turkey (CBRT). The bank announced on its social media account that it has started Turkish Lira Non-Deliverable Forward (NDF) transactions.
In a statement made through the official social media account of the bank, it was stated, "The Central Bank of the Republic of Turkey has started Turkish Lira Non-Deliverable Forward transactions, or NDF transactions as it is abbreviated in English." The CBRT's move is considered a critical intervention aimed at alleviating the pressure on the exchange rate.
WHAT IS THE PURPOSE OF TURKISH LIRA NON-DELIVERABLE FORWARD TRANSACTIONS?
Within the scope of Turkish Lira non-deliverable forward transactions, the Central Bank determines the exchange rate in advance for a specific maturity. The parties conduct transactions based on the previously agreed rate at the specified maturity. In other words, they are not affected by fluctuations in exchange rates. Instead of transferring currency in transactions, only the difference in the exchange rate is paid in Turkish Lira.