Monday, January 24, 2011

Turkish Central Bank Raises Reserve Requirements

The Central Bank of Turkey announced it will increase bank required reserve ratios from the 4th of February 2011. The increases are as follows: the reserve ratio for deposits up to 1-month maturity +200bps to 10% from 8%; the reserve ratio for immediate-access deposits +400bps to 12% from 8%; and the reserve ratio for deposits with a term of up to 3 months +200bps to 9% from 7%. The move is expected to drain about TRY 9.8 billion from the system, and follows a 25bp drop (to 6.25%) in the main monetary policy interest rate - which was aimed at weakening the Lira.
 

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