Turkish cenbank to raise lira assets weight in collateral pool

Turkey’s Central Bank headquarters is seen in Ankara, Turkey in this January 24, 2014 file photo. REUTERS/Umit Bektas

ISTANBUL, June 10 (Reuters) – Turkey’s central bank said on Friday it was increasing the weight of lira fixed assets in the collateral pool, with banks to establish long-term fixed-rate securities in lira in addition to their foreign currency deposits and participation funds.

“With this measure, it is aimed to increase the efficiency of monetary policy within the scope of liraization strategy,” the bank said.

It also said it was increasing the required reserve ratio applied to commercial cash loans in lira to 20% from 10%, in order to support financial stability.

Reporting by Daren Butler; Editing by Himani Sarkar

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