August 5, 2019 / 7:46 AM / 19 days ago

Turkish central bank hikes reserve requirement on forex deposits

ISTANBUL, Aug 5 (Reuters) - Turkey’s central bank increased the reserve requirement ratios on forex deposits and participation funds by 100 basis points for all maturity brackets, in a move to support financial stability, it said on Monday.

In a statement, the bank also said the remuneration rate for U.S. dollar denominated required reserves, reserve options and free reserves held at the bank has been decreased by 100 basis points and set at 1%.

The bank said the measures, which when announced gave a bit of support to the Turkish lira, would withdraw $2.1 billion of forex liquidity from the market.

Turkey has taken several steps this year to curb a year-long trend of Turks shedding lira for more stable currencies after last year’s currency crisis. (Reporting by Ali Kucukgocmen; Writing by Ezgi Erkoyun; Editing by Jonathan Spicer)

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