Central Bank takes new steps for Turkish Lira liquidity management

Serdar HocamAuthor & Editor

In the framework of developments in the markets, the CBRT reviewed its Turkish Lira liquidity management facilities and announced new measures.

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Taking into recent developments in the financial markets into account, the Central Bank of the Republic of Turkey has re-evaluated its Turkish Lira liquidity management facilities and announced that various steps will be taken.

Developments in the Markets and Review

The Central Bank of the Republic of Turkey announced that Turkish Lira liquidity facilities have been reviewed, taking into account the volatility experienced in financial markets. Within this scope, it was stated that new regulations suited to market conditions will be implemented.

Weekly Repo Auctions and Funding

According to the statement, the funding amount to be provided to the market through weekly repo auctions will be increased by closely considering current liquidity conditions.

Interbank Money Market Limits

In the Interbank Money Market operating within the CBRT, the borrowing limits of banks will be updated. While making this update, the current balance sheet sizes of the banking system will be taken as a basis.

Collateral Discount Rates and Additional Measures

Collateral discount rates valid in markets within the CBRT will be re-examined and reduced. Furthermore, it was emphasized that liquidity conditions will continue to be closely monitored and all kinds of additional measures will be taken if deemed necessary.