Turkey told banks to wait one day before settling some large foreign-currency purchases, the latest move to defend the lira as President Recep Tayyip Erdogan’s party seeks to keep control of Istanbul in a controversial rerun of local elections.
The bank regulator told lenders to settle all retail transactions valued at $100,000 or higher one working day later, instead of the current practice of doing it on the same day, according to a document sent to banks on Monday, which was seen by Bloomberg and verified by three bankers. The regulator didn’t immediately have a comment on the move.
The lira didn’t immediately react after posting gains earlier on Monday. The currency was down 0.2% against the dollar at 6.0380 as of 9:05am on Tuesday.
Turkish authorities have become more interventionist in the markets, drawing criticism from investors, after a series of crises turned the lira into one of the world’s weakest currencies.
Bad Company
On emerging markets, only Argentina’s peso has lost more value than Turkey’s lira in the past 12 months.
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Dean Popplewell
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