Turkey bans foreign banks including Goldman from short-selling stocks

Turkey banned six foreign banks from short-selling stocks for up to three months.

The measures will apply to Goldman Sachs Group, JPMorgan Chase, Merrill Lynch International, Barclays Bank, Credit Suisse and Wood & Co., the Istanbul Stock Exchange said in a statement on Monday.

The financial institutions did not adhere to a requirement to inform the authorities of their short-selling activities and should respect regulations, the exchange said.

Turkey has periodically imposed curbs on the short selling of stocks and the lira in recent years to bolster its financial markets. It has intensified the measures since a currency crisis in the summer of 2018, though lifted a short-selling ban for stocks at the end of last month.

Barclays, Credit Suisse and Merrill Lynch have been barred for three months, with a one-month ban being imposed on the remaining firms, the exchange said.

Investors have become wary about investing in Turkish assets due to the increasing unpredictability of economic and financial policies. Late last month, MSCI Inc., which runs key indexes tracking shares in various markets across the globe, warned that Turkey could be removed from its benchmark emerging markets index citing the short-selling bans.