On Friday when the main share index dropped sharply, lira nose-dived by more than 4%. This is when a complaint was launched and the Turkish bank watchdog took JP Morgan Chase and other banks into an investigation.
The report made known by JP Morgan on Friday lead to an agitation the financial market. As this announcement hurt the financial reputation of the banks of Turkey a complaint was filed under the BDDK controller, the next morning. The BDDK also commented that necessary judicial and the executive process will be followed.
A query was launched on JP Morgan Chase by the Capital Market Board of Turkey, as the reports released by one of the most powerful banks were misleading and caused unnecessary conjecture on the Istanbul trading and exchange markets.
When an employee from JP Morgan Chase was asked to comment on this, he politely refused to do so.
A report was released on Friday administering the falling difference between lira against the US dollars by 4%. This is the biggest fall transpiring in a day after the financial crisis that took complete control in August, in the previous year. This raised serious concern about the developing relationship with Washington is leading the Turks to buy more and more foreign cash.
The actions of the regulator were the immediate measures taken to get hold of the sharp falling off of lira’s value. On Friday the Central bank announced about the suspension of the auction for an indefinite period of time that was about to be conducted for an entire week. This was a major step taken to crush the liquidity of the US market and support the growth of lira.
The reports released by JP Morgan indicated that after the local elections have been conducted on 31st of March the value of lira will start to drop even more. The clients of the stock market are being suggested by the banks globally to sustain on US dollars.
According to the officials of the BDDK the clients were mislead and manipulated into the buying of foreign currencies, which has definitely aroused suspicion in the global market and necessary legal actions will be preceded in no time.
Even after being repetitively questioned by the reporters, the BDDK watchdog refused to reveal whether the banks that misled their clients were supposedly Turkish or any foreign association. After the stock market was closed on Friday the main index of Turkey BIST100 dropped by 3.45% and the index of the bank fell by 6.64%.