Economist Özgür Demirtaş calls on the government for 'swap' action

Economist Özgür Demirtaş has issued a 'swap' call via his social media account. Demirtaş requested an increase in the swap (foreign currency-TL exchange) limits that were introduced during the 2018 currency crisis.

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Economist Özgür Demirtaş calls on the government for 'swap' action

Özgür Demirtaş, who actively uses his social media account to comment on economic developments, has this time issued a call regarding swap limits.

Stating that loosening the limits would be beneficial at a time when the heads of the economy are working to attract foreign investors to Turkey, Demirtaş wrote the following on his X account:

"Swap channels must be opened.

The current situation does not suit Turkey.

The mentality that initially closed the swap channels will be among those buried in the dustbin of history..."

RESTRICTED FOLLOWING THE 2018 CURRENCY CRISIS

In economic circles, increasing foreigners' access to the lira by loosening swap limits is interpreted as an important step toward opening the market to foreign investors.

Restrictions on the swap market were among the steps taken by Ankara following the 2018 currency crisis to prevent foreigners from short-selling the Turkish Lira.

Opening up swap limits could lead to Turkish banks accessing cheaper TL abroad via swaps. On the other hand, it would also increase the ability of foreigners to short-sell the TL if they perceive risk.

News Source: 12punto