After announced by Turkish Statistical Institute ( TUIK),  about the inflation which reached the peak of 3 years, a surprise assessment came from the IMF.

In the statement made by the IMF, “Despite the increasing inflation in Turkey, we expect the loosening of monetary policy to create a risk of further distorting inflation expectations.”

IMF statement also underlined that if inflation pressure increases, other countries may need to tighten their monetary policy sooner than expected.

According to TURKSTAT data, consumer price index (CPI) in November 2021 is 3.51% compared to the previous month, 19.82 percent compared to December of the previous year, 21.31 percent compared to the same month of the previous year and according to twelve-month averages. There was an increase of 17.71 percent.

After the sharp upward movements in the exchange rate, the Turkey’s Central Bank decided to intervene directly in the foreign exchange.

In the statement made by the Central Bank, it was said, “Due to the unhealthy price formations in the exchange rates, direct intervention is made in the direction of selling the market.”

The Central Bank made the last direct selling intervention on Wednesday, December 1st.

The dollar, which started the day at 13.60 levels, started to rise after the announcement of the inflation data and rose to 13.80 levels.

After approaching its historical peak of 13.95 lira, the dollar fell below the 13.50 level after the intervention of the Central Bank in foreign currency.