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UPDATE 1-Turkish central bank raises forex reserve requirement ratios by 100 basis points

Fri, 20th Sep 2019 18:21

ISTANBUL, Sept 20 (Reuters) - Turkey's central bank said on Friday it had raised the reserve requirement ratios for foreign exchange deposits and participation funds by 100 basis points for all maturity brackets to support financial stability.

It said in a statement the move would result in the withdrawal of approximately $2.1 billion of forex liquidity from the market.

Turkey has taken several steps this year to curb a year-long trend of Turks switching from lira into more stable currencies after last year's currency crisis, when the lira lost nearly 30% of its value against the dollar.

Foreign currency deposits and funds, including precious metals, of Turkish local individuals and corporates rose to a record high https://tmsnrt.rs/2Yx07KI of $191.43 billion as of Sept. 13, data from the central bank showed on Thursday.

The revised ratios will be effective from the calculation date of Sept. 20, 2019, with the maintenance period starting on Oct. 4, 2019, the bank said on Friday. (Reporting by Ece Toksabay; Writing by Ali Kucukgocmen; Editing by Chizu Nomiyama and Mark Potter)

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