Turkey Keeps Investors Waiting as Swaps Controls to Stay for Now

Investors looking to make big bets on Turkish assets will have to wait longer for the country’s policymakers to meet one of their key demands — the lifting of restrictions on the offshore currency swaps market.

Turkish authorities won’t ease a cap on swaps deals in the near-term amid concerns over a weakening lira, according to people with knowledge of the discussions. Removing the cap on overseas lira supply at this point could risk an increase in short-selling activity, which the nation’s economic leadership is concerned about, they said.