Turkey Redraws Currency Defenses With Lira Hitting a Record Low

Turkey stepped back from currency interventions and moved to relax some of the restrictions that tethered the lira for months, allowing it to tumble to a record against the dollar, Bloomberg News reported. State banks withdrew support for the lira at specific levels against the U.S currency even as it dropped to an all-time low, and were largely absent from the market on Thursday, according to people familiar with the matter. Authorities will also exempt foreign banks from some restrictions on swapping foreign exchange for liras after easing access for international development institutions. The new tack offers the first clear signs that Turkey is looking to undo parts of its two central economic policies of the past year: currency interventions designed to stem the lira’s depreciation and severe restrictions on capital movement that made it difficult for foreign investors to trade the nation’s assets. Read more