Turkey Resumes Foreign-Currency Swap Transactions with Local Banks

Turkey has resumed foreign-currency swap transactions with local banks for the first time in a year. Bloomberg posted on X that this move comes after a significant drawdown in reserves, which was driven by a broad selloff across emerging markets. The decision to restart these transactions is seen as a strategic effort to stabilize the country's financial system amid ongoing economic challenges. The resumption of swap transactions is expected to provide much-needed liquidity to the Turkish banking sector, helping to mitigate the impact of recent market volatility. This development marks a significant shift in Turkey's financial strategy as it seeks to bolster its economic resilience.