Turkey introduces settlement delay for FX purchases

By Gokhan Ergocun

ISTANBUL (AA) - Turkey's Banking Regulation and Supervision Agency (BDDK) announced new measures on Tuesday for foreign exchange transactions.

FX purchases by individuals of over $100,000 will be transferred to their accounts with a one-working day delay, according to a BDDK written statement.

The BDDK said speculative and manipulative transactions have recently caused instability in foreign exchange markets.

Such trading may negatively affect the economy's basic dynamics as well as its credit and banking systems, the banking watchdog added.

Underlining that markets are continually being monitored, it noted that "high-frequency intraday transactions" by a number of accounts during the periods of volatility.

The BDDK came to the decision on Monday, hoping to minimize the negative effects "unnecessary and unfair deterioration" on banking and credit systems.

"Our legal codes, including the Banking Law, contain regulations, in compliance with international standards, which strongly protect the rights and interests of all foreign investors," the BDDK said.

The U.S. dollar/Turkish lira exchange rate was 5.27 at the end of last year, and it hovered between 5.27 and 6.20 during 2019. The rate is currently around 6.04.