ISTANBUL: Turkey’s central bank raised the minimum percentage of foreign exchange deposits that banks need to convert to Turkish liras, the Official Gazette showed on Wednesday, while hiking the forex required reserve ratios for those that remain below the limit.
The minimum conversion limit will also be imposed on corporate accounts, from only individual accounts previously, the Gazette showed.
If the conversion percentage on either individual or corporate accounts is lower than 10%, that bank will be required to hold an additional 5% in forex required reserves.
If the conversion percentage is between 10% and 20%, the forex required reserves are raised by 3 percentage points.
Turkish central bank’s net FX reserves jump to $11.81bn
The brackets for the conversion were previously 5% and between 5% and 10%.
The new regulations will take effect on Sept. 2.
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