Three global banking groups have been sanctioned by the Turkish regulator. The background to its action is the latest decline of its currency.
BDDK, the banking regulator of Turkey, has temporarily banned UBS and two other banks from making transactions in the country’s currency, the lira. UBS, BNP Paribas and Citibank had defaulted on their lira liabilities, the regulator argued, according to a report by «Reuters» newswire.
It had been decided not to make new or renew existing Turkish lira foreign currency transactions with foreign banks who default on lira liabilities, the statement read. The banks mentioned referred to BNP Paribas, Citibank and UBS.
Lira at All-Time Low
The ban includes transactions within the banking group, including across country borders, the regulator added, according to «Reuters». The news organization said that UBS declined to comment.
BDDK published the statement shortly after the lira on Thursday reached an all-time low. The state-owned newswire Anadolu had said that regulators would pursue financial players based in London which had acted to weaken the currency.
