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Pure speculation on my part here,......>

TURKISH LIRA
TURKISH LIRA: Pure speculation on my part here, but with USD/TRY down some ~1400
pips at one point in Asia trade could it be that Mrs Watanabe (Japanese retail)
is getting involved in the much favoured carry trade after the Turkish central
bank central bank suspended its 1-week repo auctions. Citi highlight that "the
upper limit for the FX maintenance facility within the reserve options mechanism
has been lowered from 40 percent to 30 percent. Reserve requirement ratios for
FX liabilities have been increased by 100 basis points for all maturity
brackets."
- Long ratios based on the latest TFE positioning suggest that Japanese
positioning remains significantly net long TRY vs. JPY, even after the recent
headwinds for the lira, could they be seeing the latest tweak from the central
bank as a reason to add?
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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