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Turkey’s Ban on Lira Loans to Some Firms Fires Up Currency Rally
Turkey stepped up efforts to bolster the lira and cool off lending with a surprise measure that bans loans to companies deemed to be flush with foreign-exchange cash, sending the domestic currency on its biggest rally this year. The country’s banking regulator is restricting commercial lira loans to corporate borrowers if they hold more than 15 million liras ($890,000) in foreign-currency cash and if the amount exceeds 10% of total assets or annual sales. The authority, known as BDDK, announced the decision on Friday. The move, earlier reported by Bloomberg HT, stoked a rally in the lira, which at one point surged ... (full story)