Ankara: Turkey’s central bank on Monday vowed to use all the tools at its disposal to “maintain price stability” after a slide in the lira last week amid investor concerns over domestic monetary policy. The lira lost around 5.2 percent in value against the greenback on Friday, its worst day since a currency crisis last year triggered by a US diplomatic spat and sanctions. The bank said it “will use all monetary policy and liquidity management instruments to maintain price stability and support financial stability, if deemed necessary”. After the bank’s statement on Monday, the lira pared back some of its losses to reach 5.64 against the dollar at 0915 GMT, up two percent on the day. The bank suspended one-week repo auctions on Friday for an undefined period after markets reacted to an unexpected drop in the bank’s foreign currency reserves.
