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Central Bank Raises Additional RRR for FX Deposits

TURKEY
  • The central bank has announced amendments to regulations aimed to deter savers from flocking to foreign currencies. The reserve requirement ratios for FX-protected accounts with maturities up to 6 months will be reduced from 30% to 25%, the central bank said on its website, while the additional reserve requirement ratio for FX-denominated deposits/participation funds maintained in TRY will be increased from 4% to 8%. The latest changes follow the end of the CBRT’s aggressive rate hiking cycle and are part of measures to encourage more savings in the local currency.
  • Elsewhere, Turkey's economic confidence rose to 99.394 in January from 96.36 in December, according to the Turkish Statistical Institute. That is the highest level since July 2023.
  • President Erdogan will announce the AK Party’s local election pledges at 09:00GMT/12:00 local time in Ankara. There are no other data releases on the docket today.

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