Turkey’s State-Owned Banks Cut FX Risks as Policies Unwind
- Lenders slow dollar sales and buy small amounts of greenbacks
- New central bank governor has pledged increased transparency
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Turkey’s state-owned banks have slashed the gap between their foreign-currency assets and offshore liabilities, a fresh signal that the government will unwind unorthodox policies that caused lenders to take on too much risk.
The shortfall has narrowed to $669 million dollar as of last week, the lowest level since December 2019, according to data compiled by the industry regulator.