Automotiv_September

Monthly automotive aftermarket magazine
BDDK
decreases
Turkish
banks’
foreign
currency
swap limits
Turkey's banking watchdog the Banking
Regulation and Supervision Agency
(BDDK) decreased the daily limit in
foreign currency swap transactions from
50 percent of banks' equity capital to 25
percent in a bid to stabilize the lira.
"The total notional principle amount of
banks' currency swaps and other similar
transactions (spot plus forward FX) with
foreign counter parties where at the initial
date of the transaction local banks pay
TRY and receive FX should not exceed 25
percent of the bank's regulatory capital,"
the BDDK said in a statement.
"In this regard, unless current excess is
eliminated, no further transactions of these
types could be executed and maturing
transaction should not be renewed.
The above mentioned ratio should be
calculated daily on a consolidated and
individual basis," the statement added.
Turkish officials described the U.S.
moves and their effects on the lira as an
economic war, and retaliated in kind to
U.S. sanction.
12 SEPTEMBER 2018