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Turkish lira sinks on C.bank’s monetary stimulus, geopolitical fears

Turkish lira sinks on C.bank’s monetary stimulus, geopolitical fears

Mubasher: The Turkish lira (TRY) hit its weakest level against the US dollar in nearly a month on Tuesday, after the central bank lowered the required reserves ratio for lenders, Reuters reported.

The lira declined as low as TRY 5.7145 against the dollar, 7% down at the end of last year.

By 12:58 pm GMT, the USD/TRY pair climbed by 0.99% to TRY 5.7164.

The Central Bank of the Republic of Turkey (CBRT) reduced the reserve requirement ratio for deposits of up to a 3-month maturity to 2% from 7% and for the deposits of up to 6-month maturity to 2% from 4%.

This applies for banks with loan growth rate of a range from 10% to 20%.

In addition, the CBRT raised the interest rate on lira-denominated required reserves to 15% up from 13% for those banks, while it set it at 55 for other banks.

Dragging down the Turkish currency were Fears about the situation in Syria, after an air strike targeted a Turkish military convoy in the northwest, killing three civilians.