The Central Bank of the Republic of Turkey’s (CBRT) Communiqué on Amendments to the Communiqué on Required Reserves was published in the Official Gazette.
Accordingly, while the required reserve ratio of Exchange Protected Deposits was differentiated according to maturity, the required reserve ratio of up to 6 months maturity, where KKM is concentrated, was increased by 10 points to 25 percent.
As a step to encourage the transition to TL time deposits, the required reserve ratio for Exchange Rate Protected Deposits with a maturity of up to 6 months (including 6 months) was increased to 25 percent. The required reserve rate for those with maturities up to 1 year and those with maturities of 1 year and longer was determined as 5 percent.
Previously, the obligation to establish reserve requirements in exchange rate protected accounts was 15 percent for all maturities.
Thus, the excess TL liquidity in the market will continue to be withdrawn from the system by increasing the required reserve ratio. At the same time, while TL time deposits are supported, long term will be emphasized in KKM.
With the decision of the CBRT Monetary Policy Committee dated August 24, 2023, it was stated that in addition to the interest rate increase, selective credit and quantitative tightening decisions will continue to be taken to support the monetary tightening process.