Central Bank raises reserve requirement requirements
The Central Bank of Turkey has recently announced changes to the required reserve ratios for Turkish Lira (TL) deposit accounts and foreign currency (FX) deposits. The adjustments aim to enhance the stability of the financial sector and promote economic growth.
Effective immediately, the required reserve ratio for short-term TL deposits has been raised from 12 percent to 15 percent, while the ratio for long-term TL deposits has been increased from 8 percent to 10 percent. In contrast, the TL facility rate for FX deposits has been decreased from 8 percent to 5 percent. These changes will come into effect on September 27, 2024.
Furthermore, the requirement for the conversion rate to TL when applying interest to required reserves for TL deposits has been eliminated. Additionally, the maximum commission rate based on the conversion rate has been raised from 5 percent to 8 percent.
These adjustments are part of the Central Bank’s efforts to ensure a more robust financial system and support the currency stability in the country. It is expected that these changes will have a positive impact on the overall economic environment and promote sustainable growth in the long run.
