Turkey Cracks Down on Currency Market Amid Lira Depreciation

Source: Bloomberg

Turkish officials are reinforcing their supervisory functions as the country struggles to contain the slump of its currency. TUR is up 0.87% premarket.

• The Turkish central bank has urged local lenders to report major dollar purchases which may have hit the market negatively, sources close to the matter said.
• Lenders have also been requested to advise corporate clients to use the futures market or the non-delivered forward market versus the spot market.
• The development is in line with already heavy interventions imposed by the central banks, in efforts to stop the further drop of the lira.
• Officials have also unveiled a new foreign-currency-linked deposit account that seeks to address the high demand for euros and dollars by local investors.
• The lira has depreciated by over 20% against the greenback in the past two weeks, dragged by the rate cuts as inflation high two-decade highs.