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The Central Bank Governor’s statement comes amid exchange rate fluctuations that have caused the value of the Turkish Lira to fall against foreign currencies

The value of the Turkish lira recently fell by more than 12% against major foreign currencies. (AA)

Turkey stressed that its banking sector remains firm, describing recent price formations in the foreign exchange markets as completely detached from economic fundamentals.

Turkey’s banking sector is “very strong” and one of the most successful in the world, Central Bank Governor Sahap Kavcioglu told a group of reporters after meeting public and private bank officials and bank CEOs on Thursday in Istanbul.

The meeting discussed a range of issues including inflation, monetary policy and global developments.

Kavcioglu’s remarks came amid fluctuating exchange rates following interest rate cuts by the Central Bank.

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“Unrealistic” price formations

In a statement on Tuesday, the bank denounced “unhealthy” and “unrealistic” price formations in the foreign exchange markets, saying they are completely disconnected from economic fundamentals.

Commenting on the volatility of the foreign exchange markets, the Central Bank of Turkey on Tuesday denounced “unhealthy” and “unrealistic” price formations in these markets, saying that they are completely detached from economic fundamentals.

“Exchange rates are determined by the conditions of supply and demand according to the dynamics of the free market. Under certain conditions, the Central Bank can only intervene in the event of excessive volatility without aiming (in) a permanent direction “, she said in a statement.

The value of the Turkish lira recently fell by more than 12% against major foreign currencies.

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Source: TRTWorld and agencies

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