The Central Bank has initiated Turkish Lira-settled forward foreign exchange transactions (NDF) to balance the foreign exchange markets. The Central Bank of the Republic of Turkey (CBRT) announced on its social media account that it has started Turkish Lira Settled Forward Forex Sales (NDF) transactions. This move comes right after the fluctuations in the foreign exchange markets. The CBRT’s action is seen as a critical intervention to alleviate pressure on the exchange rate. WHAT DOES THE CBRT’S DECISION MEAN? Within these transactions, the Central Bank determines the exchange rate at a specific future date. The parties carry out the transaction at the predetermined rate at the agreed future date. Instead of foreign exchange transfer, only the exchange rate difference is paid in Turkish Lira in these transactions.