FxPro switches Turkish Lira trades to close only mode

abdelaziz Fathi

The lineup of forex brokers that have restricted trading on the Turkish lira, following a slide in the currency to a record low against the dollar on Tuesday, is seemingly growing bigger. Among the latest entries into this group of brokers is FxPro.

Turkish Lira

In a note to its clients, Cyprus-based and FCA regulated platform said it had transferred trades on EUR/TRY and USD/TRY currency pairs to the close only mode until further notice.

“You can still close any currently open positions, and the pairs will be available for placing orders again as soon as possible,” FxPro said.

Turkey’s currency saw wild moves as investors fretted about President Tayyip Erdogan’s push to cut interest rate despite rising double-digit inflation and widespread calls to reverse course.

At one point yesterday, Turkey’s currency nosedived more than 15% to a record low of 13.44 against the dollar before trimming some of those losses. For perspective, the lira crashed more than 120 percent from a year ago. It was trading at 3.5 to the dollar in mid-2017.

The new restrictions also come as Turkey’s banking watchdog has been working hard to make it tougher to bet against the local currency. Last year, it has limited the amount of liras Turkish banks can make available to foreign investors and also barred local lenders from trading liras with three global banks.

FxPro launched its operation in 2007 and is jointly regulated by the UK’s FCA and Cyprus’ CySEC. The firm is a former sponsor of Fulham and Aston Villa football clubs. Further, FxPro is an established broker that once was planning a potential initial public offering. Although the broker was hoping to follow the listing of its rivals, such as CMC Markets and IG, it had canceled float plans after the FCA introduced stricter rules for activities of firms selling CFDs to retail customers.

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