Turkey’s central bank hikes forex reserve requirements
The bank said the increase in forex reserve requirement ratios would add $3.2 billion to forex reserves
Turkey's central bank raised foreign exchange reserve requirement ratios on Saturday, citing the need to support financial stability amid volatility in global markets.
Reserve requirements for maturities of up to one year rise to 18 percent from 13 percent, while those for maturities of between one and two years rise to 13 percent from 11 percent.
"With a view to supporting financial stability and by taking into account the latest developments in global markets, the reserve requirement ratios of foreign exchange-denominated liabilities of banks and financing companies are revised in order to encourage the extension of maturities of non-core liabilities," the bank said in a statement.
It said the increase in forex reserve requirement ratios would add $3.2 billion to forex reserves. The average reserve requirement ratio for forex, which currently stands at 11.7 percent, will rise to 12.8 percent, the central bank added.