Lira Extends Fall as Reserve Measures Compound Risk-Off Rout
- Currency declines as much as 1.5% against the dollar
- Central bank links required reserve rates to loan growth
This article is for subscribers only.
Turkey’s lira declined the most in the world after the nation’s central bank announced new reserve requirements that will loosen monetary conditions, adding to negative sentiment that dragged most emerging-market currencies down.
The lira weakened as much as 1.5% to 5.6638 per dollar, wiping out this month’s advance, after the policy maker set reserve rules that will inject about about 5.4 billion liras ($957 million), and $2.9 billion of gold and foreign-currency liquidity into the market.