Turkish Central Back cuts reserves, boosts liquidity

By Bahattin Gonultas

ANKARA (AA) - The Central Bank on Tuesday cut the foreign exchange reserve requirement ratios for lenders as part of its efforts to increase the cash circulating in the country's economy.

"Forex Reserve Requirement ratios for banks were cut by 50 basis points," the bank in a statement. "The moves could provide up to $1.5 billion to the financial sector."

The bank also said that it is monitoring excessive volatility in the markets and would take necessary measures to counter unhealthy price developments.

"Market developments are being closely monitored, and further steps will be taken if necessary to safeguard price stability and financial stability in the country," it said.

The bank's move came after the Turkish lira lost more than 5 percent of its value against the U.S. dollar so far this year.