Repurchase agreement

Turkey's Central Bank trimmed its key interest rate by 25 basis points Feb. 24, taking action in the face of falling inflation and prompting a government with one eye on a June parliamentary election to call for steeper cuts.

Greece is tapping into the cash reserves of pension funds and public sector entities through repo transactions as it scrambles to cover its funding needs this month, debt officials told Reuters on Tuesday.

The Turkish Lira tumbled to a new record low today, down to 2.426 against the dollar upon the expectation of a forthcoming rate cut by the Central Bank and the Fed's announcement of a positive trend in the U.S. economy.

Banking authorities also say the rise in the U.S. dollar has triggered the surprising rate cut by the Russian Central Bank today.

Turkish President Tayyip Erdogan has said the Central Bank?s 50-basis point rate cut announced on Jan. 20 was "insufficient," adding that securing investment and employment was impossible at current interest rate levels.

The Central Bank announced its rate decision yesterday amid unending comments by politicians, who wanted a significant rate cut.

 Frankfurt can control the flow of cash in the domestic credit system and therefore the state?s liquidity

By Dimitris Kontogiannis

The Turkish Central Bank should immediately cut interest rates, Economy Minister Nihat Zeybekci said on Jan. 13, citing the country's inflation target of 5 percent this year.

A vocal critic of the Central Bank's policies, Zeybekci told broadcaster A Haber in an interview that rates could be cut to as low as 6 percent. The bank's one-week repo rate currently stands at 8.25 percent.

 Frankfurt examines alternatives to state collateral for supply of liquidity to Greek commercial lenders

By Yiannis Papadoyiannis

Russia's central bank announced on Tuesday it increased its key lending rate to 17% with immediate effect to avert a currency crisis.

The rouble on Monday posted its biggest one-day drop versus the US dollar and the euro since 1999. The Russian currency traded 5.22 roubles lower to the dollar at 63.4 and 6.53 rubles lower to the euro at 78.81.

The positive atmosphere created by the low course of world oil prices did not last long. Following positive data about the U.S. economy, the possibility of the Fed moving forward interest rate increases has shattered the optimism brought by oil prices.