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Turkey Tightens Oversight of Currency Market as Lira Weakens

  • Central bank asks lenders to report large dollar purchases
  • Currency has dropped more than 20% over the past two weeks
Pigeons fly in front of a mural of President Recep Tayyip Erdogan in Bursa, Turkey.

Pigeons fly in front of a mural of President Recep Tayyip Erdogan in Bursa, Turkey.

Photographer: Moe Zoyari/Bloomberg

Turkish authorities are keeping tabs on investors who are buying large amounts of foreign currency and asked banks to deter their clients from using the spot market for hedging-related trades as they struggle to contain the lira’s slide.

The central bank has requested commercial lenders inform them of any big-ticket dollar purchases that may impact the market negatively, according to people familiar with the matter, who asked not to be named as the information isn’t public.