Turkish central bank says it will continue increasing FX reserves in 2024

Turkey’s central bank said on Friday it would maintain a reserve “build-up strategy” in 2024 in order to continue an uptrend in its international foreign currency reserves, adding that a floating exchange rate regime would continue.

In its annual monetary policy report, the central bank said it was maintaining its long-held medium-term inflation target of 5 per cent, and repeated that it had no forex target level and would not buy or sell hard currencies to direct the lira.

It said the Monetary Policy Committee (MPC) would convene 12 times in 2024, and that the bank would continue to use liquidity management instruments to ensure the efficiency of the monetary transmission mechanism.