What is Capital Markets? What is sterilization? | News in Planet

What is Capital Markets?

Financial markets where funds with a maturity of at least one year or more change hands are called capital markets. According to this definition, for example, T.C. Government bonds with a maturity of at least one year, investment loans and project finance loans, which are one of the government domestic debt securities (GDDS) issued by the Treasury, are considered as capital market products since their maturities are longer than one year.

What is sterilization?

The open market operations implemented by central banks to offset the effects of money supply increases for various reasons are called sterilization. For example; When the Central Bank buys foreign currency, it tries to withdraw the increase in the money supply from the market by selling securities, thus sterilizing the intervention in the foreign exchange market.

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