Turkish watchdog to investigate JPMorgan after lira plunge

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Turkish watchdog to investigate JPMorgan after lira plunge

On Saturday, the 23rd of March 2019, the Turkish financial and banking watchdog said that they had initiated a probe on JPMorgan Chase & Co. and other banks over complaints they received after a steep fall of Turkish Lira over 4 percent alongside Turkey’s main share index on Friday (March 22nd).

BDDK watchdog, the official Turk financial monitoring authority had been quoted saying on Saturday (March 23rd) that they had received complaints regarding a report of JPMorgan released on Friday (March 22nd), which believed to have hurt the reputation of Turkish banks and caused intense volatility in financial markets.

Concomitantly, BDDK watchdog had also added that the necessary “judicial and administrative processes” would be followed while pursuing an official inquiry regarding the issue. Besides, following the announcement of BDDK announcement, the Capital Markets Board of Turkey had also mentioned that they had launched an investigation upon receiving complaints that a JPMorgan report had misled thousands of investors and resulted in an offbeat speculation regarding the Istanbul bourse.

On Friday (March 22nd), the Turkish lira had lost more than 4 percent against American dollar, posting its largest intra-day fall since a currency crisis which took place earlier on August 2018, triggering concerns on Turkish Lira, as Turks had been purchasing more foreign currencies in the wake of a deteriorating relationship with Washington.

However, a copy of JPMorgan report seen by press agencies had revealed that the report contained typical client notes saying that the Lira would more likely to fall after a March 31st election and such kinds of notes are common from the banks globally.