Turkey's Treasury Rules Out Changes in Foreign Exchange Regime
(Bloomberg) -- Turkey’s Treasury denied media reports that it planned new changes in the foreign exchange regime, even as parliament prepared to empower authorities to demand access to foreign currency transaction data.
The Treasury said proposed legislation to tighten protection of the currency -- the second-worst performer in emerging markets this year -- marks a step forward for “a more liberal exchange regime.”
Lawmakers began debating the bill on Monday. It would authorize the Treasury and other relevant officials to demand information and documents from other parties, and impose fines for submitting misleading information, except in cases of state security, trade secrets or family privacy.
On May 8, President Recep Tayyip Erdogan said the government has projects in motion designed to “reverse the assaults on the economy that are fully carried out through the exchange rates.”
After erasing this year’s advance, emerging-market currencies ended the week in the green as U.S. inflation data reduced pressure on the Federal Reserve to step up monetary tightening. The rout hasn’t eased for the Argentine peso and the Turkish lira, which tumbled as authorities struggle to stem losses. The lira slid 12 percent against the dollar this year.
©2018 Bloomberg L.P.