ISTANBUL, Dec 18 (Reuters) - Turkey’s BDDK banking watchdog said on Wednesday that it was limiting banks’ foreign exchange swaps, forwards, options and other derivative transactions with non-residents to a maximum 10% of banks’ legal equity.
In a statement, the BDDK said the limit was set for lira sell side derivative transactions with maturities of seven days or less. It said transactions made with consolidated credit institutions and partnerships of financial institutions will be excluded when calculating this limit.
Last year in September, Turkey had relaxed limits imposed on its banks’ foreign exchange swaps and similar instruments, after previously limiting the transactions to 25 percent of a bank’s equity.
The BDDK also said on Wednesday that the limits set out in the September 2018 decision were still in effect. (Reporting by Ezgi Erkoyun; Editing by Tuvan Gumrukcu)