New mandatory reserve move from the CBRT

The Central Bank of the Republic of Turkey (CBRT) has taken a new step regarding mandatory reserves within the scope of its lira exchange strategy.

According to the regulation published in the Official Gazette, the mandatory reserve rates for Turkish lira deposits with a term of more than 3 months were set at zero percent.

Previously, mandatory provision rates were applied as 6 percent for TL deposits with a term of up to 6 months, 4 percent for term deposits up to 1 year, 1 year and 3 percent for longer-term deposits.

In addition, it was decided to apply mandatory reserve ratios as zero percent until the end of Jul 2023 for the increase in foreign currency liabilities with a maturity of more than 6 months that are directly supplied from abroad.

It has been announced that the said changes will be effective from the calculation date of 20 January 2023, the establishment of which will start on 3 February 2023.