Turkey Rolls Out Prison Threats After Central Bank Steps In To Halt Lira Crash, Fails

Monday, August 13, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.com
Mon, 08/13/2018

Several hours after Turkey unveiled its first tentative steps toward capital controls when late on Sunday the country’s banking regulator imposed a limit on the amount of foreign currency and lira swap and swap-like transactions (not to exceed 50% of the bank’s shareholder equity) yet failed to halt the collapse in the Turkish lira, the Turkish central bank made its first move to support the financial system and investor confidence, also without much success.

Early on Monday morning, just after 1am EDT, the Turkish central bank issued a statement in which it promised to “take all necessary measures,” and lowered the amount commercial lenders must park at the regulator while easing rules that govern how they manage their lira and FX liquidity. And while the monetary authority said all options were on the table, there was no mention of the one thing the market was eagerly looking for, namely higher interest rates.

The central bank said easing the reserve requirements would release as much as 10 billion liras, $6 billion in dollars and $3 billion worth of gold. It also eased collateral rules and tripled the amount of liras banks can borrow in return for their FX holdings to €20 billion. The $50 billion limit on the amount of foreign-exchange banks can borrow in return for their lira assets can also be changed if needed, it said.

The Rest…HERE

Comments are closed.

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter