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Following an emergency meeting on Tuesday, the Central Bank of the Republic of Turkey (CBRT) announced that it lowered the policy rate (one-week repo auction rate) from 10.75% to 9.75%.

“As developments regarding the spread of the coronavirus have weakened global growth outlook, central banks in advanced and emerging economies have taken coordinated expansionary measures,” noted the CBRT in its press release. “The pandemic disease is closely monitored for its evolving global impact on capital flows, financial conditions, international trade and commodity prices.” 

USD/TRY reaction

The USD/TRY shot higher to 6.4893 with the initial reaction but retreated sharply in the last minutes. As of writing, the pair was trading at 6.4700, still adding 0.66% on the day.