Economic news

Attempts to Calm Markets After Sell-Off Fail, Lira Declines

The Turkish currency overnight roll-over rate gained 65 percent on Monday in London from 9.5 percent following the results of the prior week, when the country’s currency turned to be under pressure and showed its lowest level in 8 months, according to Refinitiv reading.

lira slipsPhoto: Flickr

London-traded lira overnight quotes had become a spotlight in 2019 after soaring by more than 1,200 percent in April with Turkish banks taking out liquidity from London stock markets when the currency turned to occur under pressure ahead of local elections.

The BDDK authorities diminished the extent for Turkish banks’ forex swap, spot and future transactions with abroad entities to up 10 percent of their equity, whereas the former limit was of 25 percent fixed in Aug. 2018.

The Turkish currency rose to 5.975 against the greenback before reversing movement. It was worth 6.0134 at 1223 GMT, being slightly lower than quotes, which were registered on Friday.

Lira tumbled to as far as 6.05 in the last day of the previous week, its lowest reading in regular trading session since May 2019 as a latter week rally in the U.S. dollar triggered a sell-off across developing markets.

Source: Reuters, Financialpost


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