Tickmill, a retail CFD and Forex broker with offices in Europe and the United Kingdom, blocked all of its clients from opening new speculative positions on all TRY (Turkish lira) currency pairs.
In an email to all clients, Tickmill explained that "political turmoil in Turkey" has created "uncertain market conditions."
"We are switching USDTRY, EURTRY and GBPTRY to "Close-Only" mode.," said the email.Turkey's currency has been losing value since the start of the year due to raging inflation, declining economic output and surging import prices.
And while the central bank of Turkey attempted to halt the lira's plunge on Monday by reducing the currency reserve requirement on domestic banks from 45% down to 40%, the recent sanctions levied on the Turkey by the United States have greatly accelerated the lira's fall.
Just today, the lira dropped 2.70% to a new all-time low of 5.7558 against the dollar. Including today's drop, the lira has lost more than 53% of its value since the start of the year!
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