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Türkiye’s Financial Stability Committee said Thursday there is no fundamental or structural risk to Borsa Istanbul or the country’s capital markets, while the central bank announced steps to increase Turkish lira liquidity following recent financial market developments.
The committee, chaired by Treasury and Finance Minister Mehmet Simsek, said recent volatility stemmed from credit and liquidity problems affecting certain funds managed by a limited number of portfolio management companies.
“There is no fundamental or structural risk concerning the functioning of Borsa Istanbul and our capital markets,” the committee said.
“The problem is concentrated in a specific segment of the fund market and is temporary and manageable.”
The Central Bank of the Republic of Türkiye, or TCMB, separately announced measures aimed at managing Turkish lira liquidity after reviewing its available liquidity facilities in light of recent financial market developments.
The central bank said it would increase the amount of funding provided through weekly repo auctions, depending on liquidity conditions.
It will also update banks’ borrowing limits in the Interbank Money Market operated by the TCMB, taking into account the current balance-sheet size of the banking system.
“Collateral discount rates applicable in markets operated by the CBRT will be reviewed and reduced,” the bank said.
“Liquidity conditions will be closely monitored, and any additional measures will be taken if deemed necessary.”
The Financial Stability Committee said it had assessed measures aimed at maintaining healthy market functioning and protecting macrofinancial stability.
“All necessary measures within this scope will be swiftly implemented by our relevant institutions,” it said.
The measures will focus primarily on easing liquidity constraints and preventing problems from spreading to other parts of the financial system.
Regulatory and supervisory authorities will also continue to use their powers “with determination” against those found to have engaged in market-disrupting activities, the committee said.
It urged the public to rely only on statements issued by official sources and said it would continue monitoring developments and regularly inform the public.
Türkiye’s benchmark BIST 100 index opened Thursday at 12,948.83 points, down 1.32%, or 173.74 points.
On Wednesday, the index fell 5.54% to close at 13,122.58 points, with daily trading volume reaching ₺262.4 billion ($5.39 billion).
As of 9:50 a.m. local time Thursday, the U.S. dollar traded at 48.6750 Turkish liras, the euro at 56.0120, and the British pound at 65.3505.
Gold stood at $4,307.65 an ounce, while Brent crude futures were trading at $104.15 per barrel.
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