The Turkish lira yesterday lost 1.34 percent of its value against the US dollar and traded at 5.6579 in the afternoon.
The USD/TL exchange rate which closed last week with the rate of 5.5796, started the day at 5.57 with a decline and in the late hours of yesterday afternoon, the lira reached 5.6570.
The Turkish Lira traded between 5.6355 and 5.5351 against the dollar last week.
According to Bloomberg’s research, the lira was the most depreciated currency among 24 market currencies on Monday.
“The lira weakened as much as 1.5% to 5.6638 per dollar, wiping out this month’s advance, after the policymaker set reserve rules that will inject about 5.4 billion liras ($957 million), and $2.9 billion of gold and foreign-currency liquidity into the market,” Bloomberg reported.
The Central Bank of the Republic of Turkey (CBRT) on August 19 set new loan growth rate criteria for deciding reserve requirement ratios and remuneration rates, Anadolu Agency reported.
“Accordingly, the reserve requirement ratios for Turkish lira liabilities and the remuneration rates for Turkish lira-denominated required reserves are linked to the annual growth rates of the total of banks’ Turkish lira-denominated standardized cash loans and cash loans under close monitoring, excluding foreign currency-indexed loans and loans extended to banks,” the CBRT said.
The bank said the move means the ratio of and remuneration applied to required reserves has also been changed.
Turkey’s central bank cut its policy rate by 425 basis points last month to 19.75%, which helped the Turkish lira firm on Thursday last week and the lira is the only gainer across the emerging market so far this quarter.