Turkey hikes required reserves ratio for FX-protected lira deposits

The Turkish central bank hiked required reserves for FX-protected lira deposits by 5 percentage points, according to a decision published in the Official Gazette early on Thursday.

The central bank increased the required reserves for FX-protected lira deposits with maturities of up to six months to 30 per cent from 25 per cent, the gazette showed.

The required reserves ratio was increased to 10 per cent from 5 per cent earlier for accounts with maturities of up to one year, the gazette also showed.

The central bank introduced required reserves for all FX-protected lira deposits in July.

Separately, it also raised the required reserves ratio for foreign currency deposits by 1 percentage point for different maturity brackets.