Turkey central bank raises reserve requirement ratios for foreign currency deposits by 200 basis points, according to decree published in Official Gazette.
* Reserve requirement ratio for FX deposits/participation funds up to one year maturity raised to 23% from 21%, ratio for those with one year or longer maturity raised to 17% from 15%.
* Reserve requirement ratio for precious metal depo accounts up to one year maturity raised to 24% from 22%, ratio for those with one year or longer maturity raised to 20% from 18%
The decision comes ahead of the central bank’s Monetary Policy Council (MPC) meeting scheduled for September 23. While the move will add up to the central bank’s gross fx reserves, it is also speculated to counter further dollarization that can follow the expected rate cut in the remaining quarter of 2021.