Turkish State-Run Fund Sells $80 Million for Liras After Drop, Chief Says

Turkey’s state-run employment fund Iskur sold foreign currency for liras for the second day after the lira extended a two-year low against the dollar, general manager Kemal Bicerli said.

The transaction of $80 million followed a sale of $85 million yesterday, Bicerli said in a telephone interview from Ankara. Iskur may sell more foreign exchange “in the coming days” depending on market opportunities, he said.

Turkey has taken measures to arrest a slide in the lira, which accelerated amid concern over the nation’s widening trade deficit. The central bank cut the interest rates it offers on deposits in euros and dollars today, and started selling dollars in daily auctions on Aug. 5.

The lira fell 0.2 percent to 1.7844 per dollar at 11:27 a.m., declining for the fourth day and reversing gains made before Iskur said it sold the foreign exchange.

The sales are not expected to stop the lira’s decline because of “existing market conditions,” broker Garanti Securities said in an e-mailed report to investors today.

Iskur, which collects premiums from employees to pay jobless benefits, had 49.4 billion liras ($27.7 billion) under management as of June 30, according to its website. Iskur keeps 70 percent of its portfolio in fixed-coupon bonds and 2.4 percent in foreign exchange accounts.

To contact the reporter on this story: Ali Berat Meric in Ankara at americ@bloomberg.net

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net