Turkish watchdog eases swap limits with foreign lenders
Turkey's banking watchdog on Wednesday raised currency limits for swap, forward, option, and other derivative transactions that Turkish lenders execute with non-residents.
DECISION TAKEN AS PART OF NORMALIZATION PROCESS
The Banking Regulation and Supervision Agency said derivative transactions where banks pay Turkish liras and receive short-term foreign exchange (FX) at the maturity date have been limited not to exceed 30% of the bank’s most recently calculated regulatory capital.
The decision was taken as part of a normalization process amid pandemic, the watchdog added.