Turkey Central Bank Simplifies Rules Under New Governor
- Threshold for increased security maintenance lowered to 57%
- Changes come as Turkish lira continues to slump in June
Turkish Central Bank Governor Hafize Gaye Erkan speaks to the press in Istanbul, Turkey, on June 23.
Photographer: Erhan Elaldi/Anadolu Agency/Getty Images
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Turkey’s Central Bank, under new Governor Hafize Gaye Erkan, is easing its security maintenance rule as its first step to simplifying policies designed to boost Turkish lira savings.
The securities maintenance ratio has been lowered to 5% from 10% effective immediately, according to a decree published in the Official Gazette on Sunday. The ratio was increased twice from 3% to 10% in the last two years in order to support the conversion of foreign currency deposits to lira deposits as a part of the “liraization strategy.”