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Central Bank of Republic of Turkey has revised FX reserve requirement practice and ratios

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Central Bank of Republic of Turkey has revised FX reserve requirement practice and ratios

According to the news published by Central Bank of Republic of Turkey:

To support financial stability and the real loan growth-linked reserve requirement practice, the Central Bank of Republic of Turkey has decided to:

  • increase reserve requirement ratios for FX deposits/participation funds by 200 basis points for all maturity brackets,
  • apply these ratios 200 basis points lower for banks that comply with the TL real loan growth conditions to ensure that these banks are not affected by this increase.

As a result of these revisions, approximately USD 2.9 billion of FX liquidity will be withdrawn from the market.

The revised ratios will be effective from the calculation period of 27 December 2019 with the maintenance period starting on 10 January 2020.


Source: Central Bank of Republic of Turkey / link: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Announcements/Press+Releases/2019/ANO2019-52
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