Turkey has surprised foreign exchange markets with a drastic rise in interest rates for the purchase of domestic currency by foreign investors, and banks are instructed not to provide Turkish lira on important foreign exchange exchanges for FX trading, at least until Sunday's election.
The goal is to restore confidence to the pound, which devalued by more than 2% to $ 5.84416 and the rate for quick business deals in London jumped to% 1300 on an annual basis. To satisfy the demand for Turkish pounds, investors began selling Turkish shares and bonds, and the effect was felt on other currencies from the emerging markets. The measure will be temporary and, moreover, aims to get rid of speculators.
Since its sharp rise from last Friday, for the moment the pound has stabilized, returning to levels around $ 5.32 - $ 5.38, but the volatility remains high.
Ankara's expectations are for Ankara to begin implementing long-delayed reforms in the economy to restore confidence to both foreign investors and local lenders.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.