ANNOUNCEMENT 27 May 2019
On 27 May 2019, the Turkish Central Bank (CBRT) increased reserve requirements on foreign exchange deposits and participation funds to support financial stability.
NUMBER OF INTERVENTIONS
The Central Bank of Turkey Press Release on Reserve Requirements. Zorunlu Karşılıklara İlişkin Basın Duyurusu. Available at: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Announcements/Press+Releases/2019/ANO2019-22
On 27 May 2019, the Turkish Central Bank (CBRT) increased the reserve requirement on foreign exchange deposits and participation funds by 200 basis points for all maturity brackets.
As a result of this, 4.2 billion USD of foreign exchange liquidity will be withdrawn from the market.
With the measure, CBRT aims to make it more attractive for banks to collect lira deposits and to increase the bank’s reserves.