A money changer counts Turkish lira banknotes at a currency exchange office in Istanbul, Turkey.
The Capital Markets Board began its own investigation on similar grounds, according to a statement on its website.The standoff will keep investors on edge in the days remaining before bellwether municipal elections next Sunday after the Turkish currency led declines among emerging-market peers last week.
Disclosure of the two probes targeting JPMorgan broke almost simultaneously, suggesting coordination between the authorities. The central bank’s holdings declined US$6.3 billion in the two weeks through March 15, the biggest decrease in the stockpile since Jan 2014. Once outspoken about his distaste for high borrowing costs and railing against an “ interest-rate lobby” of speculators, Erdogan has stayed largely silent in recent months, leaving the central bank to focus on rebuilding its credibility.