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Partial Blockage on TRY RRRs Implemented to Prop Up Interest Rates on Deposits

TURKEY
  • Reuters report that Turkish banks will establish a partial blockage on lira required reserves, according to banking sources who say that the measure will push up interest rates on deposits. Banks with asset size larger than TRY 500bln will allocate 25% of lira RRRs, while banks with asset sizes larger than TRY 100bln will allocate 15% of lira RRRs.
  • Meanwhile, Dunya report that the first steps have been taken regarding the regulation of credit cards, with 25% limits on credit card cash advances and a reduction of instalments implemented. The government had previously signalled that regulation would be introduced.
  • Fitch Ratings is hosting a webinar on today at 14:00 GMT to discuss its recent rating action on Turkey (where the long-term foreign-currency rating was upgraded to 'B+' from 'B', and the outlook to ‘Positive’). The discussion will focus on the reasons for the rating decision.
  • There are no data releases on the docket today, and indeed no major releases scheduled for the remainder of the week.

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