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Turkey Tees Up Funding for Foreigners Who Won’t Short Lira

  • Offshore investors set to get access to lira liquidity soon
  • Authorities want to deter short selling as part of latest plan
A tourist changes Turkish lira banknotes in Istanbul.
A tourist changes Turkish lira banknotes in Istanbul.Photographer: Nicole Tung/Bloomberg
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Turkey is planning to offer local-currency liquidity to foreigners at the same rate as domestic investors, so long as the funding doesn’t reach those betting against the lira.

Under a program designed by the Treasury and Finance Ministry and expected to go into effect early next month, offshore investors will be able to access a new swap line with a maturity of at least three to six months to buy local assets, according to an official with direct knowledge of the matter.