Traders say Turkey is using $12 billion in foreign reserves to maintain the stability of the lira.

According to informed traders, due to the global market volatility caused by the Iran war, Turkey has used approximately $12 billion in foreign exchange reserves to maintain the stability of the lira, equivalent to about 15% of its foreign exchange reserves. Before the opening on Monday, the Central Bank of Turkey tightened liquidity conditions, and after the opening, banks intervened in selling dollars to suppress volatility. They stated that the scale of dollar sales gradually decreased this week, and no such transactions were observed on Thursday. Intervention has made the Turkish lira one of the best performing emerging market currencies this week, falling only 0.1% against the dollar. Turkey's net foreign exchange reserves were $78.4 billion last Friday, with total reserves of about $200 billion including gold held by the central bank.