OctaFX | OctaFX Forex Broker
Open trading account

Turkey: Measures to difficult betting against the lira – Rabobank

Over the weekend the banking regulator announced measures to reduce the possibility of foreign traders betting against the lira, Rabobank reports. The USD/TRY pair almost reached the 6.05 level with the news.

Key quotes

“Throughout last week state banks were intervening to prevent USD/TRY to break above the psychological level of 6.00. After reportedly spending more than USD 4bn, state banks finally capitulated on Friday and USD/TRY spiked to an intraday high of 6.0482.”

“The total amount of currency swaps, forwards and other similar transactions between Turkish and foreign banks has been lowered from 25% to 10% of a bank’s capital.” 

“It is worth recalling that last week the S&P classified the lira as a `managed float`.” 

“Turkish policymakers intend to achieve the official 5% target for GDP growth by injecting a substantial dose of credit stimulus. Treasury and Finance Minister Albayrak said that state banks agreed to reduce annual loan rates to 8-10% on average. This would be well below the official rate of inflation currently at 12.15% y/y.”


AUD/USD struggles to extend rebound, trades below 0.6700

After posting its lowest weekly close in more than a decade at 0.6670, the AUD/USD pair gained traction during the Asian trading hours and rose above
Read more Previous

China's Xi: Situation over prevention of coronavirus outbreak still severe

The situation over the prevention of the coronavirus outbreak is still severe, China's President Xi Jinping told the Chinese state television on Monda
Read more Next
Start livechat