Turkey Bans Lenders From Trading Liras With Citi, UBS, BNP
Bloomberg
Published May 07, 2020 13:41
Updated May 07, 2020 13:54
(Bloomberg) -- Turkey’s banking watchdog barred local lenders from trading liras with Citibank NA., BNP Paribas (OTC:BNPQY) SA and UBS AG, saying the three foreign banks failed to meet their lira liabilities.
Banking regulator issued the ban after state media blamed unidentified London-based financial institutions for taking manipulative positions against the lira.
UBS declined to comment. A BNP representative wasn’t immediately available to comment.
The currency weakened to a record low against the dollar earlier Thursday but erased losses following the regulator’s announcement. It was trading 1.2% higher at 7.1065 per dollar at 3:31 p.m. in Istanbul.
The regulator has recently limited the amount of liras Turkish banks can make available to foreign investors and banks, in an apparent attempt to make it tougher to bet against the local currency.
It also expanded the definition of manipulative trades in financial markets. Trades that generate “misleading pricing” or keep asset prices at “abnormal or artificial” levels are now considered to violate the law.
(Updates with more details from the third paragraph.)
©2020 Bloomberg L.P.
Get The App
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.