Turkey Restarts FX Swaps to Counter War Impact on Reserves

Turkey restarted foreign-currency swap transactions with local banks for the first time in a year, after a drawdown in reserves fueled by a broad selloff across emerging markets amid the war in the Middle East.

The Turkish central bank on Tuesday opened three separate dollar-for-lira swap auctions totaling $10 billion, with maturities ranging from one week to one month, under which it will borrow dollars from lenders in exchange for liras.