Mubasher: The Turkish lira (TRY) recovered on Monday, reclaiming lost ground after seeing its worst day since a plunge last year, Bloomberg News reported.

The Turkish central bank pledged once again to keep prices stable, announcing its determination to accumulate reserves.

The bank’s pledge came as it probably seeks to end speculation that it was using its stockpile to boost the lira before the elections due on 31 March, Bloomberg said. The lira levelled up 3.4% against the US dollar in early trading.

Last Friday, the central bank surprisingly tightened its monetary policy after the lira weakened.

Interest rates for overnight lending and the late liquidity window were at 25.5% and 27%, respectively, while the rate for the suspended one-week repo auctions, which the regulator said it would use as its main funding tool, was 24%.

Investigations were initiated into JPMorgan Chase and other banks for triggering the lira’s fall.

Turkish President Recep Tayyip Erdogan warned on Sunday that bankers who would be found responsible for speculating against the national currency would be punished.

“If you are soaking up foreign currencies from the market and engaging in provocative actions,” there will be “a heavy price for that,” President Erdogan said, as quoted by Bloomberg.

By 9:34 am GMT, the USD/TRY pair dropped 1.85% to TRY 5.6526.