The target of Turkey’s central bank matters. It is often said that the intervention is bound to fail and that the officials cannot resist the market, more so the global foreign exchange market, where $6.6 trillion changes every day. But winning or losing depends on what you’re setting out to achieve. If you just want to create a bit of a two-way risk and let traders know you are there, those goals are achievable. But they are only short term. The efforts of many Asian central banks during the financial crisis of the late 1990s are a case in point. The end result is usually a friendly visit from the International Monetary Fund. If the idea is to single-handedly turn a lengthy route into a prized rally, forget it. Several interventions have been successful. The key is often the size, reliability of the underlying policy, and enlisting partners with enough power to drive speculators out. Two cases come to mind: when the US joined Japan in trying to stem the volatility of the yen in 1998 and the joint intervention of the Group of Seven in favor of the euro. This is not where Turkey is now.
https://www.washingtonpost.com/business/turkey-wants-the-impossible-lower-rates-and-a-stable-lira/2021/12/02/38d9700a-535a-11ec-83d2-d9dab0e23b7e_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business Turkey wants the impossible: Lower rates and stable lira