Turkey Hits Banks With Curbs to Target Offshore Lira Market

Turkish authorities are stepping up efforts to curb local banks’ access to cheaper funding abroad, part of their campaign to deter hot-money flows from the lira market in London.

The country’s banking regulator, known by its Turkish initials BDDK, has written to the lenders this week, urging them to refrain from synthetic swap transactions they use for accessing liras cheaply overseas, people familiar with the matter said.