Central Bank introduces two-way regulation on foreign currency deposits

The Central Bank has abolished the 2.5 percent additional Turkish Lira reserve requirement for foreign currency deposits while increasing reserve requirement ratios for foreign currency accounts. The new rates will take effect on July 17.

Don't leave your news choices to an algorithm - decide for yourself what you read. Add 12punto to your preferred sources!

Central Bank introduces two-way regulation on foreign currency deposits

The Central Bank of the Republic of Turkey (TCMB) has implemented new regulations on reserve requirements to strengthen macro-financial stability and support the effectiveness of the monetary transmission mechanism.

PRACTICE FOR FOREIGN CURRENCY DEPOSITS ABOLISHED

According to the statement published on the TCMB's website, the practice introduced in 2023, which required an additional 2.5 percent reserve requirement in Turkish Lira for deposits and participation funds in foreign currency, has been abolished.

RATIOS INCREASED FOR FOREIGN CURRENCY ACCOUNTS

The Central Bank also made changes to the reserve requirement ratios applied to foreign currency deposits and participation funds. Accordingly, the ratio for demand deposits and deposits with a maturity of up to 1 month has been increased from 30 percent to 32 percent.

For foreign currency deposits and participation funds with a maturity longer than 1 month, the reserve requirement ratio has been raised from 26 percent to 28 percent.