Turkish central bank asks banks to widen FX, gold transaction spreads -sources

A woman counts her money at an exchange office in Istanbul
A woman counts her money at an exchange office in Istanbul, Turkey, October 21, 2021. REUTERS/Dilara Senkaya

ANKARA, Feb 16 (Reuters) - Turkey's central bank has asked banks to widen the spread for gold and foreign currency transactions to curb foreign currency demand, two sources with knowledge of the matter told Reuters on Thursday.

The central bank also asked the banking sector to increase derivative transaction costs to around 40%, the sources said, in a move aimed at directing such transactions to Borsa Istanbul.

Turkish central bank declined to comment.

Authorities have introduced measures to protect the markets against the impact of massive earthquakes that hit the southeastern region last week, killing more than 41,000 people in Turkey and neighbouring Syria.

Reporting by Nevzat Devranoglu; editing by Parisa Hafezi, Jsdon Neely and Bernadette Baum

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