Turkish cenbank raises mandatory exporters' FX revenue conversion rate to 40%

ISTANBUL, April 15 (Reuters) - Turkey’s central bank said on Friday it raised the share of foreign currency revenues that exporters are required to sell to the central bank to 40% from 25%, a move designed to prop up the country’s foreign exchange reserves.

In January, the government mandated exporters to sell 25% of their foreign currency revenues to the central bank, which is seeking to bulk up its reserves depleted during a currency crisis late last year.

On Monday, Reuters reported that the authorities were considering raising the threshold to as much as 50% though no decisions were made at the time.

The central bank’s net foreign currency slumped to a record low of $7.55 billion in January, mainly as a result of market interventions to prop up a tumbling lira. They have risen since, reaching $18.30 billion last week, and Turkish authorities look to export revenues to replenish them further.

Turkey’s exports totalled $225 billion in 2021 and the government and economists expect they will reach $250 billion this year.

The central bank also said income from exports to Russia and Ukraine can be submitted in Turkish lira even though it was initially disclosed as foreign currencies. (Reporting by Ebru Tuncay Writing by Ezgi Erkoyun Editing by Tomasz Janowski)