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Turkey Tweaks Rules for Banks in Boost for Official Reserves

A customer uses an automated teller machine (ATM) in Istanbul. — A customer uses an automated teller machine (ATM) in Istanbul.
Photographer: Kerem Uzel/Bloomberg

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December 28, 2019, 5:45 AM UTCUpdated onDecember 28, 2019, 9:15 AM UTC

The Turkish central bank raised reserve requirement ratios for foreign currency deposits and participation funds by 200 basis points in a step that will mop up foreign currency liquidity from the market.

Reserve requirement ratios for foreign currency deposits at notice, with no fixed term and for maturities ranging from one month to a year, were raised to 19% from 17%, according to a ruling published by the nation’s official gazette on Saturday. Ratios were raised to 15% from 13% for foreign currency deposits dated more than a year.