Turkish central bank steps up intervention measures, cuts Lira required reserves for all maturities

Dhwani Mehta FXStreet

In an attempt to stem the Lira’s decline, the Central Bank of the Republic of Turkey (CBRT), the nation’s central bank, intervenes by lowering the Lira required reserves by 250 bps for all maturities.

Key Highlights:

Cuts required reserves ratios for non-core FX liabilities by 400 bps.

Now allows the use of Euros to be used for maintenance against lira reserves under the reserve options mechanism.

With these changes, some TRY 10 billion, USD 6 billion, and gold liquidity equivalent of USD 3 billion will be provided to the financial system.

The USD/TRY cross is seen reversing its rally above 7.10 levels on the CBRT intervention, now trading around 6.4200 levels, still up +1.10% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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