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CBRT Tweak FX Reserve Requirements to Bolster TRY Use in Banking System

TURKEY
  • The Turkish central bank have raised their required reserve ratios for FX liabilities by 200bps, to 21% from 19% for the one-year maturity and to 15% from 13% for longer maturities. The Turkish central bank state the change will "increase the share of Turkish lira in the total deposit/participation funds in the banking system".
  • Manufacturing PMI for June inched back above 50.0, rising to 51.3 from 49.3. New orders were the highest since January at 50.3 from 46.4.
  • Yesterday, Turkey launched their €1.5bln 6y bond syndication, to yield 4.50% after guiding 4.50 - 4.625%. Separately, the Turkish Treasury announced plans to borrow TRY45.7bln from domestic markets across September after borrowing TRY52bln and TRY16bln across July and August.
  • As of today, Turkish households face higher electricity bills, with the regulator EPDK announcing a cost-driven price hike of 15%. Cost now sits at 91.6 liras per 100kWh.
  • Calendar highlight Thursday is the release of TCMB's weekly portfolio flows and reserves data at 2.30pm local / 1230BST. Erdogan meets MPs in Ankara and then appears at a convention at 2pm local / 1200BST.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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