Turkish central bank lowers FX sale requirement for exporters

In line with the simplification of the macroprudential framework, the Turkish central bank announced Friday it lowered the ratio of foreign exchange revenues that exporters are required to sell to the bank to 30% from 40%.

The governor of the Central Bank of the Republic of Türkiye (CBRT) Fatih Karahan had signalled the move on Tuesday, saying the bank’s reserves continued to rise.

With the measures it took in 2022, the bank was adding 40% of exporters’ foreign currency earnings to its reserves.

Starting from June 10, the new mandatory sale ratio for exporters to the central bank would thus be 30%.

“We continue to take simplification steps within the macroprudential framework with the strengthening of macro-financial stability and reserves,” Treasury and Finance Minister Mehmet Şimşek said in a post on X, formerly Twitter, on Saturday.

The minister recalled Türkiye reduced the foreign exchange sales obligation to the central bank from 70% to 40% for exporters using rediscount credits last November.

“With the new regulation, we reduced the sales obligation for all export proceeds and foreign currency-earning service revenues from 40% to 30%,” he said.

He added that the country’s simplification steps will continue for the markets to function more effectively.

According to the latest weekly figures released on Thursday, the Turkish central bank’s official reserve assets surged to $143.6 billion as of May 31, marking their highest level since Dec. 22, 2023.