The role of the Central Bank Maintaining monetary stability

he Central Bank (BDL) is offering incentives to banks in order to encourage them to attract foreign currency inflows from abroad, namely US dollars, in order to boost its own foreign currency reserves. This will enable it to better meet the country’s external financing needs and protect the lira. In this respect, BDL is likely to face more challenges in the future due to rising external financing needs and an anticipated decline in nonresident deposit inflows. The Central Bank is trying to achieve its goals through complex swap transactions with the banks that are dubbed ‘financial engineering operations’, however, these have begun to weigh more heavily on its balance sheet. There is, however, a possibility