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CBRT Takes Further Liraization Step With Tweak to Securities Maintenance Ratio

TURKEY
  • The CBRT have revised the securities maintenance ratio to 5% (up from 3%) as part of their liraization strategy that they state will persist through 2023. The policy switch is aimed at prompting banks balance sheets to hold a greater portion of their holdings in TRY, rather than FX.
  • Net sales of foreign investors persist across Turkish markets, according to Dunya, with foreigners being net sellers of $5.7bln across Turkish equities and bond markets. The share of foreigners in bonds fell to 0.83%, while foreigners in stocks dropped to 31.67%, according to the piece.
  • Dunya cites VP Oktay has stating next year’s budget will focus on ‘investment, production, employment, exports and growth’ and labelled the policy changes as ‘breakthrough’, without providing further details.
  • House price index data crosses later Tuesday, with July’s previous Y/Y read at 173.79%. The leaders of opposition parties MHP and CHP are both due to speak later today.

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