Turkey Central Bank Begins Simplifying Rules Under New Governor

Turkey’s Central Bank, under new Governor Hafize Gaye Erkan, will ease banks’ security maintenance rule as its first step to simplifying policies that were previously adopted to boost Turkish lira savings.

The securities maintenance ratio has been lowered to 5% from 10% effective immediately, according to a decree published in the Official Gazette on Sunday. The ratio was increased twice from 3% to 10% in the last two years in order to support the conversion of foreign currency deposits to lira deposits as a part of the “liraization strategy.”