Turkey's central bank cuts reserve requirement ratios

ANKARA (AA) – The Central Bank of Turkey on Tuesday reduced reserve requirement ratios in a bid to provide additional liquidity to markets.

In a statement the bank said: “Turkish lira reserve requirement ratios have been decreased by 50 basis points for all maturity brackets.”

The reserve options mechanism, coefficients for the second, third and fourth tranches of the FX facility and for the first three tranches of the gold facility have been increased by 0.1 points.

The bank estimated that approximately 1.2 billion Turkish liras ($408 million) and $670 million of liquidity would be provided to the financial system with the changes.