03.05.2025 00:50
The Central Bank of the Republic of Turkey announced new regulations to accelerate the transition to the Turkish lira. The required reserve ratios for foreign currency deposits have been increased, targets for the structure of TL deposits have been set, and regulations aimed at enhancing export revenues have been revised.
The Central Bank of the Republic of Turkey (CBRT) has implemented a series of new regulations within the framework of macroprudential measures to accelerate the transition to the Turkish lira. In the announcement, significant changes regarding foreign currency deposits, TL reserve requirements, and export revenues were disclosed.
NEW REGULATIONS ANNOUNCED
Accordingly, the reserve requirement ratios for foreign currency deposits have been increased by 200 basis points across all maturities. Additionally, the reserve requirement ratio for funds obtained from foreign currency repo transactions with domestic residents, with a maturity of up to 1 year, has been increased by 400 basis points, and a change has been made in the calculation method. Another step aimed at promoting the TL was related to the deposit structure. Banks with a corporate TL deposit share below 60% are now targeted to increase this ratio by 0.3 percentage points each month. The Central Bank has also revised the interest or compensation payment rate applied to the reserve requirements established for TL deposits. Accordingly, payments will be made at a rate of 86% instead of 84% of the CBRT's weighted average funding cost.
FOREIGN CURRENCY CONVERSION SUPPORT INCREASED
In the announcement, regulations aimed at bringing export revenues to Turkey were also included. In line with the decision of the Ministry of Treasury and Finance, with the amendment made in the Export General Communiqué, the minimum sales rate of export proceeds to the Central Bank will be applied at 35% until July 31, 2025. Finally, the foreign currency conversion support rate applied to assist firms in converting their export currencies to TL has also been increased to 3%. This rate will also be valid until July 31, 2025.