September 25 (SeeNews) - Turkey’s banking regulator said on Friday it has raised the limits for banks' currency swaps and other derivative transactions with foreigners after cutting them earlier this year to ensure financial stability during the coronavirus crisis.
The limit for transactions where banks buy Turkish lira has been increased to 10% from 1% of their equities, the Banking Regulation and Supervision Agency (BDDK) said in a statement.
Furthermore, the banks' limits for selling lira has been increased to 2% from 1% for transactions that mature in seven days, to 5% from 2% for those due in 30 days, and to 20% from 10% for transactions with the remaining maturity of one year or less.
The decision comes a day after Turkey's central bank said it has decided to increase its one-week repo rate to 10.25% from 8.25% over higher than expected inflation rate.