What Happened: The Turkish central bank has been using short-term swaps with other banks to boost its net international reserves over the last month, the Financial Times reported April 17.
Why It Matters: The timing of the central bank's swaps — just before the country's municipal elections — indicates that the institution may have been attempting to artificially prop up the Turkish lira's value.
Background: The Turkish lira depreciated by roughly 40 percent since the beginning of 2018 due to concerns over the central bank's willingness to tighten monetary policy and suspicions that President Recep Tayyip Erdogan may strengthen his control over Turkey's economic institutions.
- Turkey's Opposition Wins One Battle in a Long War (April 18, 2019)
- Turkey's Opposition Takes the Shine off Erdogan's Victory (April 1, 2019)
- Turkey's Economic Woes Dog the Government Ahead of Polls (Feb. 18, 2019)