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Turkish stocks tumble as crackdown on lira speculation spooks markets – business live


The offshore overnight swap rate, the cost to investors of exchanging foreign currency for lira over a set period, soared to 700%, after hitting 325%, the highest level since 2001, in the previous session.

The rising cost highlights what some analysts say is an attempt by Turkey’s government to arrest a decline in the lira, after the currency on Friday faced its heaviest plunge since the economic crisis during the summer of 2018. It rose both on Monday and Tuesday this week, but pulled back by more than 1 per cent as London dealings got under way on Wednesday.

A London-based analyst, who asked not to be named, said on Tuesday that Turkish banks were telling him they had been ordered “not to lend even a single lira to foreign counterparties”.



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