Turkey central bank bought $10 billion in forex this week, trader says

The reported purchase came as optimism spread across global markets after the Iran agreement, suggesting the Turkish central bank was adding foreign-exchange reserves amid improved risk sentiment.

Summary

Turkey's central bank bought $10 billion in foreign exchange this week, a trader said, as optimism following the Iran agreement lifted sentiment across global markets. The reported intervention points to reserve accumulation during a period of stronger risk appetite, when central banks can use improved market conditions to add hard-currency buffers with less pressure on domestic assets.

Terms & Concepts
  • foreign exchange: One currency exchanged for another.
  • foreign-exchange reserves: Foreign currencies held by a central bank.
  • risk sentiment: Investor appetite for higher-risk assets.