The Turkish lira rallied after the nation’s banking regulator limited lenders’ swap transactions, a move that is likely to deter short-selling in the battered currency.
The Banking Regulation and Supervision Agency, or BDDK as it is known in Turkey, cut the limit on lenders’ swap and swap-like transactions to 25 percent of shareholder equity, from 50 percent. That follows a series of steps by Turkish authorities to stem a slide in the currency to a record low on Monday.
