CB Head Yilmaz unveils 2009 monetary, exchange market policies

Central Bank Head Durmus Yilmaz yesterday held a press conference giving the outlines of 2009 monetary and exchange market policies. Yilmaz said that next year the CB will follow a sound and cautious monetary policy to grapple with the worsening conditions of the global financial crisis, giving wider space to conduct foreign currency purchases and sales and also bailing out banks when needed. "Inflation targeting and floating exchange rate policies will continue unchanged, and exchange rates will not become a policy tool," he said, adding that they will be determined solely through ordinary supply-and-demand conditions. He added, "Still, the bank will not hesitate to mobilize its vast reserves to help exchange rates overcome hurdles in times of deep oscillations and volatility."