Turkey Central Bank Imposes New Steps to Prepare for Fed Moves

Turkey’s central bank on Saturday announced a series of measures meant to protect the Turkish economy from the potentially negative impact of an expected rise in U.S. interest rates.

The central bank is forcing commercial lenders to increase the average maturity of their foreign-exchange denominated debt while boosting the banks’ foreign-exchange transaction limits with the regulatory body, the bank said on its website. It is also increasing the interest payments on lenders’ lira reserves held at the regulatory body to reduce their intermediation costs.