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Turkey Allows Banks to Lend More Dollars to Central Bank

Pedestrians pass the headquarters of the Turkish central bank in Ankara. — Pedestrians pass the headquarters of the Turkish central bank in Ankara.
Photographer: Miguel Angel Sanchez/Bloomberg

By

Kerim Karakaya and

February 25, 2020, 1:55 PM UTC

Turkey raised the amount of dollars commercial banks can lend to the central bank through currency swap deals, a step intended to boost the nation’s foreign reserves, according to a copy of a directive seen by Bloomberg.

The regulation covers bank foreign-exchange lending to the monetary authority via short-term swaps, which were capped at 20% of their total FX market transaction limits, according to the central bank directive on Tuesday.