Turkey Bars Three Foreign Banks from Foreign Exchange with Turkish Lira

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Turkey has blocked three foreign banks, BNP Paribas, Citibank, and UBS, from doing foreign exchange transactions with the Turkish lira, the Banking Regulation and Supervision Agency announced today (May 7).

These banks failed to complete their Turkish lira commitments and so defaulted, said the agency.

The move followed a report by the state-run Anadolu Agency saying some London-based financial institutions are engaged in "manipulative attacks" aimed at depreciating the Turkish lira, by buying foreign currency from the market.

The move will prevent "transactions and applications that might endanger the operation of banks" as well as ensure the credit system works effectively, said a BDDK statement.

The banking authority aims to protect the rights of both savings holders and banks in Turkey. (HA/VK)