Turkish markets and country-specific ETF popped Monday after Turkey’s central bank took steps to support price and financial stability in wake of the lira currency’s recent weakness against the U.S. dollar.
The iShares MSCI Turkey ETF (NYSEArca: TUR) gained 4.5% Monday and was testing its short-term, 50-day simple moving average.
The Turkish central bank said some 5.3 billion lira, or $1.37 billion, of lira liquidity will be yanked from the market, but some $1.4 billion of dollar liquidity will be provided to banks under a change in reserve requirements, reports Tuba Sahin for AA.
“In the recent period, the markets have witnessed unsound price formations that are inconsistent with economic fundamentals. Taking this development into account, with a view to supporting price stability and financial stability, the upper limit and the tranches for the FX maintenance facility within the reserve options mechanism have been revised,” according to the central bank.