investment and portfolio - In a significant policy shift, Turkish financial authorities are preparing to let the short-selling ban expire at the end of the month, marking a crucial step toward market normalization. Background ...
and Context:
The short-selling ban was implemented in March as part of broader measures to stabilize Turkish financial markets during a period of heightened volatility. This restriction, while providing temporary market stability, has also limited market efficiency and deterred foreign investor participation.
Market Implications:
The lifting of the ban could have several immediate effects:
- Increased market liquidity
- Better price discovery mechanisms
- Potential short-term volatility
- Greater foreign investor interest
Broader Economic Context:
This decision comes amid Turkey's wider economic reforms, including recent interest rate hikes and steps toward more orthodox monetary policy. The timing suggests growing confidence in market stability and a desire to align with international market practices.
The short-selling ban was implemented in March as part of broader measures to stabilize Turkish financial markets during a period of heightened volatility. This restriction, while providing temporary market stability, has also limited market efficiency and deterred foreign investor participation.
Market Implications:
The lifting of the ban could have several immediate effects:
- Increased market liquidity
- Better price discovery mechanisms
- Potential short-term volatility
- Greater foreign investor interest
Broader Economic Context:
This decision comes amid Turkey's wider economic reforms, including recent interest rate hikes and steps toward more orthodox monetary policy. The timing suggests growing confidence in market stability and a desire to align with international market practices.