This report has been deactivated

0

0
Turkey: (In)Visible Hand of the Central Bank
Tue, May 13 2008, 09:36 GMT
by Yapi Kredi Bank Economic Research Department
UniCredit Group
Short after the introduction of floating exchange rate regime following the crisis in 2001, the Central Bank of the Republic of Turkey (CBRT) intervened in the currency markets from time to time in order to ensure the stability of exchange rates. Although any kind of intervention does not fit into the nature of “pure” floating exchange rate regime, it occurs as an “inevitable option” under certain circumstances.
The main intention behind these interventions have almost always been disputed by financial markets and the usual take has been that the CBRT had some level concerns in mind all the time despite their rhetoric which focused on mitigating volatility in the FX market. It has for quite some time been a matter of credibility, and probably still is, for the CBRT as to what it executed aimed at something different than it preached, but very little has come out as verifying or contradicting analytical work.
Another YKB research (by Cevdet Akçay and Murat Can Aşlak, forthcoming) is supportive of the CBRT’s stated intentions, but different analytical approaches should be more than welcome to gain an insight into the decision making process of the CBRT. This piece is a very modest attempt at that.
Published on
Tue, May 13 2008, 09:42 GMT
UniCredit Group
| Via A. Specchi, 16 00186 Roma
http://www.unicreditmib.eu/ | communication@unicreditgroup.eu
Legal disclaimer and risk disclosure
The content of the Investor Relations section (hereinafter, Investor Relations) of the UniCredit website is the property of UniCredit. No prior authorization is required to store the content of the section in any format, or to reproduce or consult the said content exclusively for personal use.
The data, opinions and special sections (dates of assemblies, dates of board meetings, press releases, presentations, etc.) appearing in Investor Relations are included exclusively for the purpose of providing information on the activities of the UniCredit banking group, Gruppo Bancario UniCredit. The said data, opinions and special sections are not to be understood in any way as an incitement to saving on the part of the general public or as a means of promoting any specific form of investment or trading activity. Furthermore, the said data and information are not to be understood as a means of promoting or placing financial instruments, investment services, or banking/financial products/services.
The information may be used for personal investment decision-making purposes entirely at the user's risk.
Before terminating any operation directly or indirectly based on the information presented in Investor Relations, users are advised to contact their bank or other authorized financial broker for confirmation of the validity and accuracy of the said information and of the appropriateness of any such operations, as described in Investor Relations, in view of the user's personal needs, income, and economic or financial conditions.
The information contained in Investor Relations is produced by internal Gruppo Bancario UniCredit sources. UniCredit reserves the right to modify the said information and the functional and operational use specifications applying to Investor Relations as and when it chooses to do so, at its own discretion and with no forewarning.
UniCredit will do its utmost to ensure that the information presented in Investor Relations fully conforms to the requisites of reliability, truthfulness and accuracy, and that the said information is fully updated. UniCredit accepts no responsibility for any errors or imprecision in the content of Investor Relations resulting from circumstances that cannot be ascribed to UniCredit.
Furthermore, UniCredit accepts no responsibility for any untoward consequences of brief or prolonged interruptions, delays or dysfunctions in the provision of the Investor Relations service due to power blackouts, telephone line failures, Internet failures or circumstances beyond the control of UniCredit.
For all further information or explanations, please contact the operators indicated by the "Contacts" section of Investor Relations.