2 financial institutions exempted from Turkish lira transaction limit, says banking watchdog
Turkey’s banking watchdog on Wednesday gave exemptions to two foreign institutions Euroclear Bank and Clearstream Banking from its new limit on banks’ lira transactions with foreign institutions.
On May 5, the Banking Regulation and Supervision Agency (BDDK) lowered the limit to 0.5% of banks’ equity for Turkish lira depo, repo transactions, and credits with foreign financial institutions.
Today’s decision on Belgian-based Euroclear and German-based Clearstream was taken to ensure the efficient trading of Turkish lira securities, and so the clearing operations of Turkish-lira-denominated bond and lease certificates transactions are not adversely affected, the BDDK said in a statement.
The agency added that Turkish lenders’ branches in the Turkish Republic of Northern Cyprus (TRNC), the TRNC Central Bank, and TRNC Development Bank were also exempted from the limit.