The Central Bank of the Republic of Turkiye (CBRT) made regulations in the establishment of securities and required reserves in order to strengthen its liraization strategy.
CBRT’s Communiqué Amending the Communiqué Amending the Communiqué on the Establishment of Securities and the Communiqué Amending the Communiqué on Required Reserves was published in the Official Gazette and entered into force.
Accordingly, 31 March 2023 will be taken as the basis for the calculations for the next six months in the calculation of conversion rates from foreign currency deposits/participation funds to Turkish lira deposits/participation funds.
Banks with a share of Turkish lira deposits/participation funds exceeding 70% will be exempted from macro-prudential measures according to the loan interest.
On the other hand, 5 points will be added to the FX required reserve ratio liabilities of banks whose share of Turkish lira deposits/participation funds are below 60% in all maturities.
The target was set at 60%
In the 2023 Monetary Policy and Liraization Strategy Text, the CBRT shared with the public that the policies to be implemented within the framework of the liraization strategy could be strengthened and used to permanently increase the weight of the Turkish lira on both the asset and liability sides of the banking system.
For the first half of 2023, the target of making TL in deposits was 60%.
Source: Trthaber / Prepared by Irem Yildiz