Turkey’s banking regulator drops forex trading ban on 3 foreign lenders

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Turkey’s Banking Regulation and Supervision Agency (BDDK) is dropping a trading ban imposed last week on UBS, Citigroup and BNP Paribas because they promptly fulfilled foreign exchange obligations, according to a letter BDDK sent to banks on Monday, Reuters reported.

The three foreign banks — which were hit with the ban on Thursday when the Turkish lira fell to a record low — have now “fulfilled their obligations in a reasonable time frame,” said the letter seen by Reuters and confirmed by a BDDK spokesman.

A BDDK investigation into UBS AG, Citigroup Inc and BNP Paribas continued, the letter said, but gave no details.

The ban was one of a few protective measures adopted by the government on Thursday when the lira tumbled intraday to 7.269 to the dollar, its weakest ever.

Legal actions were also launched against London-based financial institutions, a state news agency said on Thursday, and regulators were given more authority to prosecute market manipulation.

The BDDK said at the time the three banks did not fulfill lira liabilities in due time, and the ban covered units of the trio in other countries.

Turkish Minute

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