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Turkey Eases Reserves Rules for Third Time Since Failed Coup

  • Central bank lowers lira requirement ratios by 50 basis points
  • Authorities acting again to boost liquidity as lending slows
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Turkey’s central bank lowered reserve requirements for banks, the third time since July’s attempted coup that the regulator has acted to boost lira and foreign-exchange liquidity.

Lira reserve requirement ratios were lowered by 50 basis points, the bank said in a statement on Tuesday. The bank also lowered the amount of foreign-exchange and gold that lenders must keep as collateral for their liabilities. The changes will add around 1.2 billion lira ($408 million) and $670 million of liquidity if lenders adopt the new ratios, the bank said.