Turkey’s central bank holding talks on swap lines with several central banks: report

Murat Uysal, governor of Turkey's central bank, gestures as he presents the 2019 inflation report during a news conference in Ankara, Turkey, on Wednesday, July 31, 2019. President Recep Tayyip Erdogan, who fired Uysal’s predecessor for not lowering rates, said that Uysal’s 425-basis-point cut last week “is not enough." Photographer: Miguel Angel Sanchez/Bloomberg

The Turkish Central Bank is having talks on a swap lines with several central banks but cannot currently provide details, Turkish Central Bank Governor Murat Uysal said on Thursday, according to Reuters.

In a presentation on the bank’s quarterly inflation report, Uysal said although there was pressure on reserves in the short term it would ease and that changes in forex reserves were impacted by the balance of payments.

The central bank lowered its mid-point inflation forecast for end-2020 to 7.4 percent from 8.2 percent in its previous inflation report, Uysal said.

The bank also forecast that inflation would fall to 5.4 percent at the end of 2021, Uysal said, unchanged from the forecast in the previous report. Inflation is expected to move gradually to a target of 5 percent, he said.


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