Turkey took another attempt at halting depreciation of its currency. Turkish banking regulator introduced new rules requiring domestic banks to allocate very high risk weighting (500%) to TRY loans given to foreign investors. Reasoning behind the move is that it will squeeze TRY liquidity abroad and make it harder for offshore investors to borrow in liras with intent of selling them on the markets. USDTRY slumped back below 17.00 handle and is now trading over 3% lower on the day.
USDTRY slumps back below 17.00 as Turkey attempts to curb lira short selling. Source: xStation5