Selective credit and quantitative tightening steps, which were emphasized in the decision of the Central Bank of the Republic of Turkiye (CBRT) Monetary Policy Committee (MPC), started yesterday.
In this context, the Communiqué Amending the Communiqué on Required Reserves was published in the Official Gazette.
According to the Communiqué, required reserve ratios for Currency Protected Deposits were increased. Thus, the Central Bank will ensure that the Turkish lira excess liquidity in the market is withdrawn from the system by increasing the Turkish lira required reserve ratio.
In this context, as a step to encourage the transition to time deposits in Turkish lira, the obligation to establish 15% required reserves was imposed on exchange-protected accounts.
Required reserves will be established as of August 4 on the liabilities to be calculated as of July 21.
In yesterday’s MPC resolution text, “The Board took decisions on selective credit and quantitative tightening to support the monetary tightening process, as well as interest rate hikes.” statement was included.
Source: Trthaber / Prepared by Irem Yildiz