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LEAVE A COMMENT Your email address will not be published.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*
Lebanon credit rating cut deeper into junk by Fitch
Bolsonaro’s Amazon flame throwing unsettles farming support base
Trump heaps another 5% tariff on Chinese goods
Japan and US reach framework trade pact; no US concessions seen: Nikkei
Pakistan PM orders to prepare roadmap to revive economy
Amazon inks deal to buy 49% stake in India’s Future Retail
Trump roils currency market, reigniting intervention speculation
Copper seen ‘heading south’ on route Fed rate cuts can’t reverse