The Turkish public and financial markets have been recently preoccupied with discussions on a particular term following the recent decision by the Central Bank of the Republic of Turkey (CBRT) to limit the Turkish lira trade in the overseas markets. The term is no other than swap. The popularity of the term has gained significant visibility on social media.
Twitter’s timeline in Turkey is full of tweets by young and middle-aged people who are trying to understand this complicated financial term. The social media platform is flooded with eloquently written tweets by leading financial experts, responding to the public curiosity.
But it is inevitable to ask how the “swap talk” in the financial markets and the Turkish public become so popular. It all started when the CBRT on Monday decided to squeeze the over the counter lira trade by increasing the swap sale limit to 20 percent from 10 percent for transactions that have not matured. The swap move came following Friday’s decision to suspend the one-week repo auctions through which the central bank funds the Turkish market at 24 percent as a measure against the volatility of the Turkish lira during the trading session on that day. The lira tumbled by nearly 5.5 percent against the greenback in one day.
BY DAILY SABAH NEWS
