Turkey's Currency Is Plummeting And The Central Bank Is Blowing Through Tons Of Cash To Try To Save It

The Central Bank of the Republic of Turkey (CBRT) has intervened in the foreign exchange market six times already today to prop up the value of the Turkish lira.

Over the course of those six auctions, the central bank has flooded the market with $1.4 billion in hard currency in order to boost the lira against the dollar – but it isn't having much luck.

The chart below shows the dollar-lira exchange rate today. Despite all of the dollars being sold into the market by the CBRT, the lira keeps weakening against the dollar.

The lira has been among the hardest-hit emerging market currencies since May, when rising fears that the Federal Reserve would begin to taper back monetary stimulus sooner than expected hit markets around the world.

Political unrest in Turkey over the past several weeks hasn't helped the currency.

Right now, the dollar is up 0.5% against the lira, trading around