ISTANBUL: Turkish authorities asked banks to carry out foreign exchange transactions with corporate clients between 10 a.m. (0700 GMT) and 4 p.m. (1300 GMT) when the market is most liquid to help avoid large price swings, three bankers said on Tuesday.
The step came as Turkey’s lira slid by more than 3% over four sessions to lows last touched in mid-December, when it was gripped by a currency crisis that rattled the emerging market economy and sent inflation soaring.
The central bank and the BDDK financial regulator made the request in the last few days for banks to conduct FX trades during the six busiest market hours, the three bankers told Reuters, requesting anonymity.
Separately, the central bank sent lenders a document, obtained by Reuters, clarifying how to apply reserve requirements to loans following its announcement of the new regulation last month.
The 50-page document was sent Friday. The April 23 announcement was meant to curb some lending after a sharp recent rise, and bankers separately said it sent overnight rates higher and prompted some confusion among lenders.
The central bank and BDDK declined to comment.