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BNP Paribas Halts New Turkish Lira Trades at Prime-Broker Unit

  • Prime unit only processing trades that cut, maintain holdings
  • French bank one of biggest players in market for Turkish lira
Turkish Economy As Gross Foreign Exchange Reserves Fall to $51.1 Billion
Photographer: Kerem Uzel/Bloomberg
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BNP Paribas SA is shrinking its operations in the Turkish lira market following a regulatory clampdown that briefly barred local lenders from trading with the French bank this month, according to three people with knowledge of the matter.

The bank’s foreign-exchange prime-brokerage unit, which caters to hedge funds and other institutions, has stopped offering customers new Turkish lira trades, the people said, who asked not be named as the details aren’t public. Paris-based BNP Paribas will only process trades that maintain or reduce clients’ positions, one of the people said.