Turk central bank to pull out from forex market

Ankara, Jan 2: Turkey'sS central bank said on Wednesday it would aim to introduce an inflation targeting regime in 2002 and stop guiding the Turkish lira in the interbank and foreign exchange markets. Turkey aims to make inflation targeting the centre-piece of its fiscal and monetary policy as it works to implement a $19 billion IMF-backed crisis rescue programme.

The central bank will gradually end its guiding role in Turkey’s interbank market from July 2002 and withdraw from currency markets by the end of the year, the bank said in a report outlining its foreign exchange and monetary policy for 2002. The bank said state-owned banks and troubled banks seized by the government during recent financial turmoil would gradually pull out of Turkey’s money markets as their liquidity improves.

— Reuters