Turkish President Recep Tayyip Erdoğan said his country would defeat attempts to hurt the country’s economy hours after local regulators lifted a ban on three foreign banks from trading in the currency markets.
Erdoğan spoke as Turkey’s banking watchdog said it ended a four-day exclusion of Citigroup, UBS and BNP Paribas from buying and selling liras. Investigations against the institutions would continue, it said.
The lira fell to a record low of 7.269 per dollar last week. It traded 0.7 percent stronger at 7.02 per dollar on Tuesday morning local time in Istanbul.
“We are aware of the insidious aims behind the traps being set for our economy and the management of our economy,” Erdoğan said late on Monday in televised comments following a meeting of the cabinet.
The Turkish authorities have sought to defend the lira, with the central bank engaging in currency swaps in the local market with state-run banks to sell dollars for liras. The operations have depleted the central bank’s reserves of foreign currency, which now stand at around zero when subtracting liabilities.
Citigroup, UBS and BNP Paribas are major players in the lira market and have made use of offshore swaps on behalf of clients looking to short the lira. The banking watchdog last week accused the institutions of failing to meet liabilities to local banks, but said on Monday that they had now been met.