Turkey freezes seven asset managers’ fund trading and orders 130 funds to liquidate after market selloff
Turkish regulators froze trading in funds run by seven asset managers and ordered liquidation of 130 funds after a sharp BIST selloff and redemption delays triggered a retail "fund run". The central bank expanded repo funding and interbank borrowing limits to stabilize lira liquidity and reduce forced selling risk. While measures may cap immediate contagion, the episode raises concerns about market integrity and financial stability in Turkey.
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Turkish regulators froze trading in funds run by seven asset managers and ordered 130 funds to liquidate following a market selloff. The funds involved have a combined portfolio of 891 billion lira ($21.4 billion) and about 353,000 investors, according to a source cited by Reuters. The Central Bank of the Republic of Turkiye increased repo funding to 300 billion lira and lifted banks’ interbank borrowing limits tenfold to ease lira liquidity strains.