Turkey: FX reserve requirement practice, ratios revised

By Aysu Bicer

ANKARA (AA) - The Turkish Central Bank on Saturday revised Foreign Exchange reserve requirement practice and ratios in order to support financial stability and the real loan growth-linked reserve requirement practice, the bank said in a statement.

The bank has decided to raise reserve requirement ratios for FX deposits/participation funds by 200 basis points for all maturity brackets, it added.

The bank will apply these ratios 200 basis points lower for banks that comply with TL real loan growth conditions to ensure that these banks are not affected by this rise.

"As a result of these revisions, approximately $2.9 billion of FX liquidity will be withdrawn from the market," it explained.

The revised ratios will be effective from the calculation period of Dec. 27 with the maintenance period starting on Jan. 10.