Turkey Rolls Out New Rules to Protect Lira, Cool Credit Demand
- Turkish central bank seeks to tighten credit card spending
- Lira has come under pressure ahead of local elections
Pressure is also on the central bank to raise the benchmark interest rate after inflation in February accelerated more than analysts expected.
Photographer: David Lombeida/BloombergThis article is for subscribers only.
Turkey’s central bank announced new measures to curb credit-card spending and deter demand for hard currencies ahead of local elections at the end of the month.
The central bank raised the monthly maximum interest on cash advance from credit cards and overdraft accounts, according to a notice published in the Official Gazette at midnight. It separately raised monthly targets for lenders to increase the share of lira deposits, state-run Anadolu Agency reported.