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CBRT changes required reserve ratios for Turkish lira deposits

In order to encourage the prolongation of the maturity of Turkish lira deposits, it was decided to set the required reserve ratios as zero percent for Turkish lira deposits with maturities longer than 3 months.

The Central Bank of the Republic of Turkiye (CBRT) announced that it has decided to set the required reserve ratios as zero percent for Turkish lira deposits with maturities longer than 3 months, in order to encourage the extension of the maturity of Turkish lira deposits.

In the announcement made by the CBRT on macroprudential measures, it was reminded that in the Monetary Policy and Liraization Strategy Text for 2023, the policies to be implemented within the framework of the Liraization Strategy will be strengthened and used in order to permanently increase the weight of the Turkish lira on both the asset and liability sides of the banking system.

In addition, the announcement reminded the public that steps will be taken to strengthen the preference for Turkish lira deposits by primarily encouraging Turkish lira deposits other than currency-protected deposits.

“In this context, it has been decided to set the required reserve ratios as zero percent for Turkish lira deposits with maturities longer than 3 months, in order to encourage the extension of the maturity of Turkish lira deposits. In addition, it has been decided to apply zero percent required reserve ratios until the end of 2023 for the increase in FX liabilities with a maturity longer than 6 months directly obtained from abroad. The said changes will be effective from the calculation date of January 20, 2023, the plant of which will start on February 3, 2023.”

Source: AA / Translated by Irem Yildiz

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