May 19 Youth and Sports Day because markets are closed today, though continuing operations in international markets in Turkey.
The Dollar / TL continues to drop below its 7 level from its historical peak of 7.2690, which it saw 2 weeks ago.
While the dollar / TL fell below 6.90, starting the day at the lowest level since April 20. bankers state that the most important development of the week will be the Central Bank’s interest rate decision.
a swap agreement that satisfies investors are being closely monitored in terms of investor confidence in the market can not ensure they will provide a series of interest rate swap agreements envisage Turkey’s trade partners in the short term. This expectation is reflected in TL as value gain.
LIMITATION CLAIM TO TL TRANSACTIONS FROM BNP PARIBAS
The world’s two largest clearing and custody institutions, Clearstream Banking and Euroclear Bank, announced that they stopped the TL swap transactions on May 18. Bloomberg also suggested that French bank BNP Paribas, one of the biggest players in the TL transactions market, also restricted TL transactions.
It is claimed that BNP Paribas’ main intermediary unit in the foreign exchange market, which meets the TL needs of hedge funds and other institutions, has stopped offering new TL transactions to its customers. According to the sources on the subject, the bank will continue to deal with customers to maintain or reduce their positions.
The Banking Regulation and Supervision Agency temporarily banned local banks to exchange foreign currency-swap with Citigroup, UBS and BNP Paribas on 7 May 2020, and the ban was lifted on 11 May. The BRSA stated that the investigation on these banks is ongoing.
Prime brokers have also announced that they have stopped their TRY transactions. On the Prime side, closing transactions means that fx companies cannot hedge their transactions to continue to serve TRY products. There will be 2 options 1) Try book will be 2) Product processing will be closed
