ISTANBUL, March 7 (Xinhua) -- The U.S. dollar's ascent against the Turkish lira continued on Thursday, leading to increased demand for the U.S. currency among Turkish citizens.

The dollar was trading at 31.85 liras at 2 p.m. local time (1100 GMT), showing a slight increase from Wednesday's closing rate of 31.79 liras.

In Istanbul's Grand Bazaar, an area teeming with currency exchange offices, the dollar briefly surpassed the 32-lira mark on Wednesday, prompting a surge in demand for the greenback.

Long lines have formed outside these exchange offices since Wednesday as people rush to acquire dollars in anticipation of further gains.

Baris Soydan, former editor-in-chief of Turkish daily newspaper Sabah, notes that amidst soaring inflation, both the dollar and gold serve as assets safeguarding Turkish citizens against inflation, with significant demand observed not only in Istanbul but also in many other cities.

On his YouTube channel, Soydan highlighted that the central bank was implementing "full-scale defense measures" and was in talks with banks to curb the dollar's rise.

According to local media reports, the central bank held discussions with bank executives on Wednesday in an effort to stabilize the market.

The online news platform Para Analiz disclosed that the central bank cautioned banks against unwarranted foreign currency demand.

Following these discussions, economic analyst Evren Kirikoglu stated that banks would face restrictions on foreign currency transactions beyond a specified level. He also mentioned that foreign currency dealings would be limited to a short window during lunchtime.

Türkiye has been grappling with high inflation rates, which hit 67.07 percent in February. Over the past year, the dollar's value against the lira has increased by 68 percent. Enditem

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