- High Volatility due to Coronavirus and Interest Rates
- Trading of TRY is disabled temporarily
- What happened to TRY?
High Volatility due to Coronavirus and Interest Rates
The volatility and recent depreciation of the Turkish Lira has been caused by the weakening of the global economic outlook after the spread of the Coronavirus, in addition to interest rates being cut by 100 basis points in April by the Central Bank of Turkey.
More recently some market participants like BNP Paribas, Citibank and UBS have been banned from the TRY markets by the Turkish government.
Trading of TRY is disabled temporarily
Axiory has announced that opening positions on TRY (Turkish Lira) pairs will be disabled, effective from 19.00 GST / 16.00 WAT.
This decision was made following Turkey’s statement of banning multiple large banks from making Lira transactions.
In order to protect all clients from potentially large losses, Axiory will only allow you to close any open positions on TRY pairs until further notice.
Axiory is in constant talks with their liquidity providers and as soon as the situation is stabilized full trading will be allowed again.
What happened to TRY?
The TRY hit a record low on Thursday following authorities announcing a crackdown on “manipulation” by foreign banks in London.
This stems from rising investor concern over the country’s economic strength and ability to defend its currency during an extremely volatile period for the financial markets due to COVID-19.
Due to this news TRY liquidity is expected to be extremely thin in both the spot and swap market in the coming days due to uncertainty and possible market volatility which will put your trading accounts at greater risk.
We remind clients that during periods of volatility spreads and overnight swap prices may widen.
Please keep you account fully funded to maintain your existing positions.