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Turkey State Banks Prop Up Lira Ahead of Syria Incursion

  • Currency weakens to a session low as military offensive begins
  • Losses come even as state lenders increase dollar sales
A bureau de change in Istanbul.

A bureau de change in Istanbul.

Photographer: Miguel Angel Sanchez/Bloomberg
Updated on

The lira weakened as Turkey began a military offensive into northeastern Syria, stymieing efforts by state banks to buttress the currency through dollar sales.

The Turkish currency reversed earlier gains to fall almost 1% after President Recep Tayyip Erdogan announced the cross-border operation. The losses picked up even as state lenders increased the amount of dollars they were selling to the market, according to people with knowledge of the matter, who asked not to be identified because the information isn’t public.