Central Bank announces new steps to bolster Turkish Lira – Latest News

ANKARA

The Central Bank has announced a raft of new measures within the macroprudential framework to support the transition to the Turkish Lira.

Accordingly, reserve requirement ratios for FX deposits have been raised by 200 basis points across all maturities.

The reserve requirement ratio for funds derived from FX repo transactions with residents, maturing in up to one year, has been increased by 400 basis points, alongside a revision in the calculation method.

A monthly increase target of 0.3 points for TRY deposit share of legal persons has been introduced for banks with a share lower than 60 percent, while the remuneration rate applied to required reserves maintained for lira deposits has been raised from 84 percent to 86 percent of the Central Bank’s weighted average funding cost.

With an amendment made to the Exports Circular as per the decision of the Treasury and Finance Ministry, the minimum share of export proceeds to be sold to the Central Bank shall be 35 percent until July 31, the bank said in a statement on May 3.

The FX conversion support rate, which is applied to firms’ foreign currency conversions of export proceeds to the lira, has been raised to 3 percent until July 31.