Turkey: Watchdog puts new limits on forex swaps

New measures in place due to uncertainties rising from coronavirus pandemic

Turkish banks’ foreign currency swap transactions cannot exceed over 1% of their equities, the country’s regulatory authority said Sunday.

Due to rising disparity and risks related to the COVID-19 pandemic, the Banking Regulation and Supervision Agency limited forex transactions for financial stability.

Last week, the agency put a limit to these transactions at 10% of the bank’s equities.

With new travel restrictions in place and millions of people around the world under lockdown, the pandemic has spurred market uncertainties sending stocks plunging and pushing unemployment figures to record highs.

Since appearing in Wuhan, China, last December, the novel coronavirus has spread to at least 185 countries and regions.

The virus has infected around 57,000 in Turkey and caused nearly 1,200 deaths, according to official figures on Sunday.

Data compiled by the U.S.-based Johns Hopkins University shows worldwide infections surpassed 1.85 million, with the death toll above 114,000, while more than 434,000 have recovered.

Anadolu Agency

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