CBRT introduces limit adjustment on swaps

The Central Bank of the Republic of Turkey (CBRT) has implemented a new regulation on the quoted swap channel to increase the efficiency of the funding structure in the market. In a letter sent by the Bank's Administrative Center to banks, it was stated that "the total amount of outstanding swap sales transactions carried out through quotations has been reduced from 30 percent to 3 percent of the Foreign Exchange and Banknotes Market transaction limits."

According to an exclusive report by Bloomberght, the letter also stated that within this framework, limits on a bank basis have been capped at 3 percent of the Foreign Exchange and Banknotes Market transaction limits determined for each bank.

It was also emphasized that limit usage will be applied independently, without being deducted from the Foreign Exchange and Banknotes Market transaction limits.

The swap stock in the CBRT-sided foreign exchange swap market stands at 46.4 billion dollars. The total swap position, including foreign exchange deposits, is at the level of 50.1 billion dollars.

There is a record liquidity surplus in the banking system, with net funding at minus 740 billion TL.