Turkish Central Bank holds Turkish lira deposit buying auctions for 1st time in 17 years

The Turkish Central Bank has held a Turkish lira deposit buying auction for the first time in the last 17 years.

The bank said on Thursday that it will continue to "implement quantitative tightening by extending the sterilization tools at its disposal to support the monetary tightening process."

The bank also said: "Turkish lira deposit buying auctions will be held to enhance the monetary transmission mechanism and contribute to the diversification of the sterilization instruments."

The deposit buying aims to reduce excess liquidity in the market.

While the amount realized in the auction was 79.99 billion liras ($2.7 billion), 193.85 billion liras ($6.6 billion) of bids were received for the auction.

In the auction, the minimum interest rate was announced as 41.5%, the maximum interest rate as 42.4% and the average interest rate as 42.18%.