Social trading focused broker and asset management company Darwinex today announced that it has disabled TRY trading until further notice.
This happens amid Turkish lira price swings after the recent interest rate cuts by the Turkish Central Bank.
“Because of the uncertainty created by said interest rate cuts, we have taken the decision to disable the opening of new trades on USDTRY, EURTRY and GBPTRY until further notice (only allowing the closure of trades opened beforehand),” Darwinex said.
The company explains that this extreme measure is to protect both the company and its customers.
The Turkish central bank today published a summary of the Monetary Policy Committee meeting held on November 18, 2021.
The document states:
“The monetary policy stance will be set by taking into account the evaluations on the source and permanence of risks, along with the extent to which they can be contained by monetary policy, and with a focus on bringing inflation down permanently in a cautious manner and achieving the price stability target.
Accordingly, the policy stance will continue to be determined by taking into account inflation developments, inflation expectations, as well as the temporary factors projected to bear effect on these in the short term, and at a degree of tightness that will restore the disinflation process as soon as possible and ensure its sustainability until the medium-term targets are achieved.
Recent increase in inflation has been driven by supply-side factors such as rise in food and import prices, especially in energy, and supply constraints, increase in administered prices and demand developments. The revision in the monetary policy stance began to affect commercial loans positively. In addition, developments in consumer loans are closely monitored.
The Committee evaluated the analyses to decompose the impact of demand factors that monetary policy can have an effect, core inflation developments and supply shocks and decided to reduce the policy rate by 100 basis points to 15 percent.
The Committee expects that the transitory effects of supply-side factors and other factors beyond monetary policy’s control on price increases will persist through the first half of 2022. The Committee will consider to complete the use of the limited room implied by these factors in December”.