CBRT lowers FX reserve requirement ratio to 40% from 45%

In a recently published press release, the Central Bank of the Republic of Turkey announced that the upper limit for the FX maintenance facility within the reserve options mechanism has been lowered to 40% from 45%.

"With this revision, approximately 2.2 billion US dollars of liquidity will be provided to banks," the bank further added.

With the initial reaction to the announcement, the USD/TRY pair, which touched a fresh record-high at 5.1958 on Monday, fell to 5.15 area. However, the positive impact of this development on the TRY quickly faded away and the pair was last seen trading at 5.18, where it was up nearly 2% on the day.