03.05.2025 07:50
The Central Bank of the Republic of Turkey (CBRT) announced a series of new regulations aimed at promoting the transition to the Turkish lira and strengthening financial stability by increasing the reserve requirement ratios and encouraging the conversion of export foreign exchange revenues.
The Central Bank of the Republic of Turkey (CBRT) has made significant regulations within the macroprudential framework to support the transition to the Turkish lira. According to the announcement dated May 3, 2025, the decisions taken to encourage the transition from foreign currency to TL are of great interest to both banks and exporting companies.
REQUIRED RESERVE RATIOS INCREASED
As part of the regulations, the required reserve ratios applied to foreign currency deposits have been increased by 200 basis points across all maturities. Additionally, for funds obtained from foreign currency repo transactions with domestic residents for maturities of up to 1 year, this ratio has been raised to 400 basis points. The calculation method for repo transactions has also been updated.
CBRT also aims to increase the TL deposit ratios of banks. In this context, banks with a TL deposit share below 60% have been given a target to increase this ratio by at least 0.3 percentage points monthly.
Another change regarding required reserves is related to the interest or compensation payments to be made on the reserves established for TL deposits. According to the new regulation, payments will be made at a rate of 86% instead of 84% of the CBRT's weighted average funding cost.
35% OF EXPORT REVENUES TO BE SOLD TO CBRT
With a decision taken in coordination with the Ministry of Treasury and Finance, an update has also been made regarding the obligation to sell export proceeds to the Central Bank. By July 31, 2025, at least 35% of export revenues will need to be sold to the CBRT.
The foreign currency conversion support rate for exporting companies has also been increased. Accordingly, the support rate provided to exporters who convert their foreign currency to TL will be applied at 3% until July 31, 2025.
With these regulations, CBRT aims to promote the use of the Turkish lira and strengthen financial stability.