Turkish lira and shares rise after Fed move
Güncelleme Tarihi:
Turkish lira and shares rise after the U.S. Federal Reserve announced plans to add liquitdity to markets. Lira gaind 1 percent against dollar to around 1.23 levels. Istanbul main share index is also up around 4 percent. Fed plans to lend up to $200 billion of Treasury securities in exchange for debt including private mortgage-backed securities that have slumped in value as homeowners defaulted on their payments.
The measures announced by the Fed are part of a coordinated effort with other central banks, including the Bank of England, Bank of Canada, European Central Bank and Swiss National Bank.
The Fed set up a new tool, the Term Securities Lending Facility, to lend Treasuries to primary dealers for 28-day periods, through weekly auctions. The Fed also said in a statement in Washington that it's increasing the amount of dollars available to European central banks through swap lines.
Today's steps are the latest in Chairman Ben S. Bernanke's effort to alleviate increasing strains in financial markets that are curtailing credit to homeowners and companies, even after the Fed lowered its main interest rate by 2.25 percentage points. The Fed last week said it will make up to $200 billion available to banks through other tools to help boost liquidity.