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The Turkish Central Bank reveals new steps to support the lira
The Turkish Central Bank reveals new steps to support the lira
Today, Friday, the Turkish Central Bank announced new steps consistent with its goals to abandon dollarization, support the lira, and reduce government bond yields.
Its new steps include the central bank increasing the percentage of securities that banks must hold if their deposits in lira range between 50% and 60% of their total deposits, to seven percentage points from two, according to an announcement in the country's Official Gazette.
The price of the lira stabilized today, Friday, at 19.2580 after declining to 18.7195 at the end of last year, and the Turkish currency lost about 30% of its value against the dollar in 2022 and lost 44% in 2021.
The central bank also said that the requirement to increase the mandatory reserve on foreign exchange deposits by 5% will be applied to banks whose share of the lira is less than 60% of total deposits.
And the bank reintroduced targets for converting deposits from foreign currencies into lira, requiring banks to hold different amounts of securities based on multiple conversion targets on different dates.
