The Banking Regulation and Supervision Agency (BDDK), Turkey’s banking watchdog, in a move to reduce access to the monetary market, has cut the limits of currency swaps and other derivative transactions that lenders execute with non-residents when receiving and paying with Turkish liras at the maturity date. The limits have been reduced from 10% of a bank’s equity to 1% with a maturity of seven days, and to 2% for transactions with a maturity of 30 days.
BDDK in a statement said that it had made the amendment to support measures taken to protect financial stability and manage risks raised by the global coronavirus outbreak.