Turkey’s banking watchdog said Sunday it was slashing the limit for banks’ foreign-exchange swap, forward and option transactions with foreign entities from 10% to 1% of a bank’s equity.
In a statement, the Banking Regulation and Supervision Agency (BDDK) said it made the amendment to support measures taken to protect financial stability and manage risks raised by the global coronavirus outbreak.
With new travel restrictions in place and millions of people around the world under lockdown, the pandemic has spurred market uncertainties, sending stocks plunging and pushing unemployment figures to record highs.
The BDDK also said it is reducing the amount of lira sell-side foreign exchange swaps, forwards and other derivatives made with nonresidents with a maturity of seven days to 1% of the banks’ equity. Those with a maturity of 30 days were reduced to 2% of the banks’ equity.
Since appearing in Wuhan, China, last December, the coronavirus has spread to at least 185 countries and regions.
The virus has infected around 57,000 people in Turkey and caused nearly 1,200 deaths, according to official figures on Sunday.
Data compiled by the U.S.-based Johns Hopkins University shows worldwide infections have surpassed 1.85 million, with the death toll above 114,000, while more than 434,000 have recovered.