The Central Bank of the Republic of Türkiye (CBRT) has announced a package of macroprudential changes aimed at supporting the transition to the Turkish lira (TRY), combining higher reserve requirements on foreign currency (FX) liabilities with incentives and targets to lift TRY deposit shares and updated rules for the conversion of export proceeds. Reserve requirement ratios for FX deposits have been raised by 200 basis points across all maturities, while the reserve requirement ratio for funds derived from FX repo transactions with residents with maturities up to one year has been increased by 400 basis points and the calculation method changed. Banks with a TRY deposit share of legal persons below 60% are now subject to a monthly increase target of 0.3 points. The remuneration rate applied to required reserves held against TRY deposits has been increased from 84% to 86% of the CBRT’s weighted average funding cost. Separately, following an amendment to the Exports Circular by the Ministry of Treasury and Finance, the minimum share of export proceeds that must be sold to the CBRT has been set at 35% until 31 July 2025, and the FX conversion support rate for firms converting export proceeds into TRY has been raised to 3% until the same date.
Central Bank of Türkiye 2025-05-03
Central Bank of the Republic of Türkiye tightens macroprudential framework with higher FX reserve requirements and 35% export-proceeds sale requirement
The Central Bank of the Republic of Türkiye announced macroprudential changes to support the transition to the Turkish lira, including higher reserve requirements on foreign currency liabilities and incentives to increase TRY deposit shares. FX deposit reserve requirements rose by 200 basis points, and FX repo transactions by 400 basis points. Additionally, the minimum share of export proceeds to be sold to the CBRT is set at 35%, with a 3% FX conversion support rate until July 2025.