Click For Photo: https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/max_650x650/public/2019-05/bfmEED9.jpg?itok=atLEgsMq
Just days after we exposed the possibility that Turkey is misrepresenting its dollar reserves (using swaps to inflate its levels), Bloomberg reports that the Erdogan administration has imposed soft capital controls on large retail dollar purchases to stem outflows.
The lira has been rallying all day amid chatter of heavy bank-buying (at the suggestion of authorities to support debt auctions), but as headlines hit about the capital controls, the lira began to slide.
Bloomberg - Sign - Approach - Policy-making - Turkish
Bloomberg reported that, in the latest sign of their increasingly interventionist approach to policy-making, Turkish authorities asked some of the nation’s primary dealers to support the government’s borrowing drive last week, according to three people with direct knowledge of the matter.
And now banks should settle all retail transactions valued at $100,000 or higher one working day...
Wake Up To Breaking News!
Don't believe everything you think...