ISTANBUL, July 24 Turkey's central bank said on Thursday that from next month the U.S. dollar will be the only foreign currency accepted for lira required reserves held with it by lenders, in a bid to reduce the impact of euro-dollar fluctuations on its balance sheet.
Some lenders in Turkey currently hold a portion of their lira required reserves at the central bank in euros. The central bank estimated that a total of 12.7 billion euros ($17.1 billion) in reserves would need to be exchanged for dollars.
The central bank announces its reserves in dollars, meaning it is exposed to volatility in the euro-dollar exchange rate. It said the new requirement would take effect from August 1.