Online forex broker FX Choice said on Thursday it changing some key trading conditions for USD/TRY and EUR/TRY due to the ongoing political situation in Turkey. Starting 13 October, 2016, the broker will increase spreads and swap values.
From 17 October, the broker will also cut leverage rates to a maximum 50:1 for the two currency pairs.
The changes will apply for both existing and new positions. They are necessary due to the deteriorating political situation in Turkey and, consequently, the increasing volatility of TRY instruments.
The broker did not specify whether these are temporary measures and whether it intends to bring back the previous trading conditions.
The USD/TRY has been constantly fluctuating in the recent past, affected by a number of factors. On Thursday, the TRY hit close to 3.11 against the USD, the lowest in at least a decade. One reason for this is the ongoing political uncertainty in the country, further spiked by Turkish PM Binali Yildirim’s statement that constitutional reform is on the way. On the other hand, the TRY got affected by the announcement made by the US Fed on Thursday that interest rates could be hiked “relatively soon“. Turkish economy is tightly linked to the US currency since most of the Turkish central bank’s reserves are in USD and so are its foreign trade operations.
FX Choice offers trading in forex, precious metals, binary options, and contracts for difference (CFDs) on futures. The broker is registered in Belize and licensed by the local International Financial Services Commission (IFSC).