Turkey's watchdog puts new limits on forex swaps

ISTANBUL - Anadolu Agency

Turkish banks' foreign currency swap transactions cannot exceed over 1 percent of their equities, the country's regulatory authority said on April 12.

Due to rising disparity and risks related to the COVID-19 pandemic, the Banking Regulation and Supervision Agency limited forex transactions for financial stability.

Last week, the agency put a limit to these transactions at 10 percent of the bank's equities.

With new travel restrictions in place and millions of people around the world under lockdown, the pandemic has spurred market uncertainties sending stocks plunging and pushing unemployment figures to record highs.