FxPro to restore Turkish lira trading, but with 5% margin requirement

FxPro to restore Turkish lira trading, but with 5% margin requirement

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The UK forex broker FxPro informed its clients that next Monday it will restore trading in Turkish lira (TRY) pairs, but with increased margin requirements of 5% for all new positions.

We remind you that on Monday, July 18 FxPro set all TRY pairs to “Close Only” on its MetaTrader 4 and 5 platforms and disabled the TRY crosses on cTrader, in order to mitigate the negative effects of the failed military coup in Turkey on the lira value.

According to the new notice, FxPro will restore normal trading as of Monday, July 25.

Meanwhile, the TRY took another dive against the dollar to an all-time low, after the Standard & Poor’s Global Ratings  agency downgraded Turkey’s credit rating to double-B, with a negative outlook, which indicates additional downgrades could follow. According to S&P, the failed coup undermined the Turkish economy and investment environment.

bloomberg lira

Even though Bülent Gedikli, an adviser to Turkey’s President Recep Tayyip Erdogan tweeted to defend Turkey’s economic health and call S&P’s downgrade illogical and Turkey’s finance minister Naci Agbal has vowed that the country’s economy will survive any shocks, other rating agencies are also poised for downgrading, while financial analysts predict deepening economic problems. At the same time Wednesday’s announcement of a three-month state of emergency in Turkey made matters even worse.

“A three-month state of emergency is very far from market-friendly policy, and we will see further pressure on the currency,” Neil Shearing, chief emerging markets economist at Capital Economics in New York told Bloomberg. “The currency may fall to as low as 3.20 per dollar by year-end”, he said.

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