Türkiye’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.
The Central Bank of the Republic of Türkiye (CBRT) also hiked the forex required reserve ratios for those banks 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.
The brackets for the conversion were previously 5% and between 5% and 10%. The new regulations will take effect on Sept. 2.