Central Bank takes step for financial stability
The Central Bank of Turkey (CBRT) increased reserve requirement ratios for foreign exchange (FX) deposits to support financial stability. The rise came in 200 basis points, the Bank said in a written statement on May 27. “As a result of this, $4.2 billion of FX liquidity will be withdrawn from the market,” the CBRT added. The decision covers FX deposits and participation funds for all maturity brackets. The Bank lowered the ratio two times in 2019, in February and May, respectively.