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Turkish c.bank makes dollar only alternative currency for lira required reserves
July 24, 2014 / 11:57 AM / 3 years ago

Turkish c.bank makes dollar only alternative currency for lira required reserves

ISTANBUL, July 24 (Reuters) - 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.

$1 = 0.7419 Euros Reporting by Daren Butler and Nevzat Devranoglu; Editing by Nick Tattersall

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