The Central Bank of Turkey amended the Communiqué No. 2013/15 on Mandatory Reserves (the “Amendment”). The Amendment was published in the Official Gazette No. 30688 on February 16, 2019.
- The Amendment decreased the mandatory reserve ratios for liabilities in Turkish Lira as below:
- Prior to the Amendment, up to 5% of the reserves for liabilities in Turkish Lira could be set aside as standard gold whose source is refined or scrap gold collected from Turkish residents. With the Amendment, this threshold is increased to 10%.
- The amendment on mandatory reserve ratios entered into force upon its publication, effective as of February 8, 2019. The amendment on the gold reserves will enter into force on February 22, 2019.
The Amendment aims to increase banks' liquidity by decreasing mandatory reserve ratios and increasing the facility to set aside reserves as gold.