Turkey’s central bank moved to stem a slump in the lira, suspending daily purchases of dollars and cutting the cost of long-term deposits in foreign exchange. The lira pared earlier losses. The central bank in Ankara ended daily purchases of $30 million, according to an e-mailed statement today. It also reduced the reserve requirement for banks on foreign currency deposits of more than a year by as much as 2 percentage points to 9 percent. The bank cited the need to monitor “implementation of the decisions taken by the EU leaders to resolve European countries’ public debts.” The lira extended a two-year low today with investors citing concern that Turkey is not doing enough to tackle a current account deficit that widened to 9 percent of economic output in May. Central bank’s efforts, including making consumer lending more costly, have so far failed to trim the import bill while export growth has slowed with the crisis in Europe. The lira fell 0.6 percent to 1.7075 per dollar at 12:19 p.m. in Istanbul. The currency dropped as much as 2.2 percent earlier. To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net To contact the editor responsible for this story: Mark Bentley at mbentley3@bloomberg.net

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