XTB Proceeding With Plans to Leave Turkish Market

Polish FX brokerage XTB is proceeding with its plans to exit ‎the Turkish market and will be withdrawing its registration ‎with the CMB, according to a corporate statement.‎

XTB stated earlier in November 2017 that it may suspend its plans to ‎cease operations in Turkey until the end of the first half of ‎‎2018, as the listed company expected Turkey’s authorities ‎to retreat from a number of limits to the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term business ‎that were introduced earlier this year.‎

But after the Turkish regulators had given no indication of their intention to ‎revise the significant limitations on forex ‎regulations, XTB has decided to put an end to its presence in the ‎country through liquidating its subsidiary X Trade Brokers Menkul ‎Değerler.‎

Despite gloomy conditions and uncertain prospects for Turkey, XTB is ‎accelerating its expansion plans and setting high targets for international ‎growth, particularly in Latin America, Africa and Asia.‎

XTB wrote to its shareholders that it plans to use its presence in Belize as a starting ‎point for expanding business in Latin American countries. Thanks to the ‎presence in Belize, the group can offer Latin American customers a region-specific ‎service and adopts its marketing strategies to local conditions.‎

XTB stated earlier that it expects that the CMB ‎initiative will significantly reduce overall activity in ‎Turkish retail Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term. It also said that these drastic ‎changes to the regulatory structure have contributed to a ‎considerable decline in the number of customers and ‎consequently to a significant reduction in the activity of ‎XTB Group in Turkey.‎

XTB’s decision to withdraw from this market was also ‎based on the recent economic and political situation in ‎Turkey which, in the company’s opinion, has also affected ‎the business environment and triggered uncertainty in this ‎market.‎

XTB explains that due to the recent jump in Turkish lira volatility, the group is not able to ‎precisely estimate the financial cost of its decision, therefore it will be recognized in the future statements.‎

According to previous information from the XTB website, the ‎decision to shut down its Turkish subsidiary will affect the ‎current financial situation. Specifically, it will require that ‎the value of the shares of its Turkish unit be written off, ‎which equal PLN 9.7 million ($2.55 million).‎

Furthermore, the company has intended to separately ‎create another write-off of the value of its intangible assets ‎to reflect the shutdown of its brokerage activities license ‎in Turkey. This amounts to approximately PLN 5.6 ‎million ($1.47 million).‎