Turkey Set to Restore Short-Selling Activity as Month Draws to Close, Signaling Shift in Market Policy

ContractFreelancer · 2025-12-26T21:31:53+00:00

Turkey is lifting its short-selling ban on August 29 to attract international investment as its benchmark index reaches new highs and interest rates are cut. This reflects confidence in market stability and aims to enhance liquidity and trading activity.

ContractFreelancer

2025-12-26 21:31:53

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Turkey’s financial regulators are preparing to allow the short-selling prohibition to lapse naturally on August 29, representing a strategic pivot aimed at bolstering the appeal of its equity markets to international capital. According to market sources, this adjustment comes as the benchmark index has reached fresh highs and the central bank has resumed cutting interest rates in Turkey—both developments signaling improved market stability.

The restriction was initially imposed in March following market disruptions linked to geopolitical tensions. By lifting the ban, authorities seek to broaden trading activity and deepen the market’s liquidity, making it a more competitive destination for global investors seeking emerging market exposure. The relaxation of interest rate in Turkey’s monetary policy, combined with the removal of trading restrictions, is expected to create a more favorable environment for portfolio diversification.

Beyond the short-selling measure, policymakers plan to allow several other temporary safeguards to expire as scheduled. This coordinated approach reflects confidence that market fundamentals have stabilized sufficiently to warrant a return to standard trading mechanics. Market observers anticipate that increased trading volume and enhanced price discovery will follow the policy reversal.

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