Question

Where can we see the swap operations of TCMB with the banking system? How does TCMB use swap operations to increase its reserves? Are these operations sustainable to have a secure international reserve? Support your argument.

Answer 1

The SWAP exchanges in TCMB will be led by means of the citation strategy with banks endorsed inside the trade and Banknotes Market inside their pre-decided cutoff points.

Money swaps zone unit understandings to trade premium installments and principals designated in 2 totally various monetary standards and as often as possible have one leg mounted and in this manner the distinctive coasting. The rate on the mounting leg is intently connected with the yields on the securities of a comparative residency and cash.

Cross cash swap rates and Treasury commitments yields have a coordinated long haul balance relationship and subsequently the deviations from the harmony zone unit immediately arbitraged away. On the contrary hand, the connection winds up more fragile on the grounds that the residency surpasses a half year and completely vanishes when one year. accordingly these don't appear to be property to possess an all-inclusive term secure universal hold.