Trying to stop the rot, the CBRT intervenes and the USDTRY drops to ~16.50
- CBRT justification for intervention is 'unhealthy price formations'
This is like starting a fire (cutting rates) and then putting it out (intervening) and going, 'well done me!'
If there is one thing we have learnt over the last 15 years it is that FX interventions are almost always a bad idea. Even the mighty SNB had to eventualy capitulate to market forces. I fought the law and guess what, the law won!