Central Bank of Turkey decreases interest rates on lira deposits
The Central Bank of Turkey has decreased the interest rates valid for required reserve ratio in Turkish lira deposits of banks from 25 to 23 percent, stated a bank press release.
The interest rate was determined as 25 percent in July 2002. With the aim of contributing to the efficiency of banks by alleviating their financial intermediation costs, lira required reserves and foreign exchange required reserves are being remunerated in order to reduce the funding costs of required reserves maintained by the Central Bank.
The interest rate applicable to foreign exchange required reserves will continue to be determined weekly, and shall be equivalent to the interest rate on two-day notice deposits that the banks hold as free deposits with the Central Bank. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
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