Turkey: U.S. Credit Pushes Stocks to their Peak

The credit, which is to be used to ease the budget deficit, sparked market optimism and a foreign exchange selling frenzy, seeing the dollar decline to its lowest level of the year. At that level, the MB intervened by purchasing directly from the market.

The last time the MB stepped in, on July 18, it drew back US$938 million from the market.

It is predicted that MB intervention will be necessary if this selling trend continues.

A foreign exchange banker said, "The decline trend in currency continues as there isn’t any negativity in the market, apart from the Supreme Court’s expected decision on the Democratic People’s Party (DEHAP)."

In the statement made by the MB after the intervention, it was said, "Unlike previous instances when direct purchases was necessary for intervention, this one did not indicate uneasiness due to the exchange rate level."