Turkey’s banking watchdog said it had launched an investigation into JPMorgan and other banks over complaints it received after the lira plunged more than 4% and the main share index fell sharply on Friday.
The BDDK watchdog said on Saturday it received complaints that a report JPMorgan published on Friday hurt the reputation of Turkish banks and caused volatility in financial markets.
The necessary “administrative and judicial processes” would be followed, it said.
The Capital Markets Board of Turkey (SPK) also said it had launched a probe after receiving complaints that a JPMorgan report was “misleading” and caused speculation on the Istanbul bourse.
A JPMorgan spokesman for the region declined to comment.
The Turkish lira tumbled more than 4% against the US dollar on Friday, its biggest one-day fall since a currency crisis took hold in August, raising concerns as ties with Washington deteriorate.
The regulators’ actions are the latest official measures to counter the lira’s decline.
The central bank said on Friday it was suspending one-week repo auctions “for a period of time”, a policy tightening move to squeeze market liquidity and support the lira.
A copy of the JPMorgan report seen by Reuters said it saw a high risk that the lira would decline after local elections set for 31 March, recommending clients to go ‘long’ on the US dollar.
BDDK also said it was looking into claims that “some banks” had lead clients to buy foreign currencies in a manipulative and misleading way, and that the necessary administrative and judicial processes would be followed.
The watchdog did not say which those banks were, or if they were Turkish or foreign.
The total forex deposits and funds including precious metals of Turkish individuals hit a record high of $105.74bn in the week to March 15, data from the central bank showed on Thursday. Turkey’s main index BIST100 was down 3.45% at Friday’s close, while the banking index had declined 6.64%.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
PM visits National Control Center of Kahramaa
MoTC initiative equips Qatari SMEs for digital transformation
Qatar’s banking sector maintains resilience, amid evolving regulatory landscape, technological changes: KPMG
Qatargas sets milestone, delivers 3,000th LNG cargo to Japan
QFC Employment Standards Office report provides overview of ESO strategy, initiatives, key milestones
Mena energy sector investments may reach $1tn between 2019, 2023: Apicorp
‘Japanese economic blow could backfire’
China GDP growth slows to 27-year low in 2nd quarter
Philippines stocks break into bull run on rate cut optimism