The Central Bank of Turkey is reducing the required reserve ratio (RRR) on banks’ long term FX deposits, Reuters reports. The RRRs on banks’ one-year FX deposits will go down from 11% to 10%.
RRRs on deposits of up to three years will be lowered from 11.5% to 10%. The move will contribute $590 million of added liquidity to the market. The central bank will also cut daily FX auctions.
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