Turkish Central Bank moves to provide more liquidity

Bank has decreased foreign exchange reserve requirement ratio to provide additional $700 million of FX liquidity

ANKARA (AA) - The Central Bank of Republic of Turkey (CBRT) has announced that the reserve option coefficients had been changed to provide additional liquidity to the financial system on Thursday.

The CBRT stated that the coefficient for the first tranche of the FX facility of Reserve Option Mechanism had been kept unchanged while the second tranche had been decreased by 0.1 point; the other tranches have been decreased by 0.2 points.

According to the CBRT press release, the bank is aiming to provide approximately $700 million of liquidity to the financial system with these changes, should the reserve option utilization rates remain unchanged.

The bank uses the reserve option mechanism as an instrument to ease the effects of volatile capital flows for the purpose of protecting macroeconomic and financial stability.

Kaynak:

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