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Turkey’s Missing Billions Signal Unannounced Lira Intervention

  • Net foreign assets fell by $5.9 billion earlier this week
  • Drop came as Erdogan rolled out steps to support flagging lira

Turkish net foreign assets fell by nearly $6 billion early this week as President Recep Tayyip Erdogan unveiled plans to bolster the lira, suggesting Turkey made unannounced interventions in foreign-exchange markets. 

While the government has said it didn’t intervene, the fall of $5.9 billion probably signals a backdoor intervention similar to operations carried out over two years from October 2018, when state lenders sold dollars to support the local currency.