Turkey's central bank not buying FX despite lira rally -official

Nevzat Devranoglu
·1-min read

By Nevzat Devranoglu

ANKARA, Nov 26 (Reuters) - Turkey's central bank is not buying foreign currencies, one of its officials told Reuters on Thursday, despite a rally this month in the lira that some traders said opened a window for the bank to rebuild its depleted FX reserves.

The currency soared some 12% after the heads of the central bank and finance ministry were replaced over the course of three days early this month, and after President Tayyip Erdogan pledged a new market-friendly era for the economy.

But the lira slid back 5% this week, stoking speculation that the central bank may have been buying dollars or preparing FX auctions.

"The central bank is not buying foreign currency," the official said, requesting anonymity.

(Writing by Jonathan Spicer; Editing by Daren Butler)