Turkey increases reserve requirements on FX deposits

Authorities aim to discourage citizens from transferring assets into other currencies, weakening the lira

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Turkey’s central bank raises reserve requirement ratio on foreign currency deposits by 100bp

The Central Bank of the Republic of Turkey raised reserve requirement ratios on foreign exchange deposits in a bid “to support financial stability”, it said yesterday (August 5).

The institution increased the reserve requirement ratio on foreign currency deposits by 100 basis points to 14%. Additionally, it reduced, by the remuneration rate for US dollar-denominated required reserves, reserve options and free reserves held at the central bank by 100bp to 1%.

Turkish authorities want to

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