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 per cent, that bank will be required to hold an additional 5 per cent in forex required reserves. If the conversion percentage is between 10 per cent and 20 per cent, the forex required reserves are raised by 3 percentage points.
The brackets for the conversion were previously 5 per cent and between 5 per cent and 10 per cent. The new regulations will take effect on September 2.