Turkish central bank raises FX reserve requirements

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The central bank also introduced a new swap on 9 May that will allow it to bolster its international reserves by borrowing gold from commercial lenders.

Monday 27, May 2019

(Bloomberg) – The Central Bank of Turkey (CBRT) has increased the amount of foreign currency lenders are required to stock at the regulator as reserves, another step by the monetary authority to boost its coffers.

The regulator increased reserve requirements for foreign-exchange deposits by 200 basis points, the measures will withdraw around $4.2 billion of liquidity from the market.

Data last week showed that Turkey’s net international reserves dropped to the lowest level since October as concerns linger that the central bank is trying to prop up the lira before elections next month.

TAGS : CBRT, Lira, foreign currency reserves

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