Turkish central bank says banks are to be provided all the liquidity they need

CBRT issues a statement

• Collateral deposit limits for lira transactions raised
• More than one repo auction may be conducted per day now
• Banks are to be able to borrow FX deposits in 1M maturity
• Central bank is to resume intermediary function at FX deposit market
• Banks' FX deposit limits may be raised
• Central bank to continue to monitor markets, take all necessary measures

In terms of actions to stymie the decline in the lira, this is rather mild. The lira is gaining a little on the back of this with USD/TRY falling from 6.75 to 6.72 currently but without much else it is tough to see this as a stop gap measure that will halt the lira's decline in the bigger picture.

Considering how much Erdogan is against raising interest rates, this is probably the best measure the CBRT could go with given the current situation. USD/TRY now down to 6.69.