February 16, 2019 / 8:27 AM / a year ago

Turkish central bank lowers lira required reserves

ANKARA, Feb 16 (Reuters) - Turkey’s central bank on Saturday lowered the level of lira reserves that banks must hold against deposits, while also raising the limit of gold that lenders can hold.

In an issue of the Official Gazette, the central bank said the reserves ratios were by reduced by 100 basis points for deposits and participation funds with maturities up to one year and for other liabilities with maturities up to, and including, three years. All other liabilities were cut by 50 basis points.

It also said the upper limit of holding standard gold converted from wrought or scrap gold was increased from 5 percent to 10 percent of lira reserve requirements.

Reducing reserve requirements gives banks more money that they can use, for example, for lending. (Reporting by Nevzat Devranoglu and Tuvan Gumrukcu; Editing by Mark Potter)

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