As part of its steps to tighten liquidity management, the Turkish Central Bank has decided to reduce to zero borrowing limits of lenders in the Interbank Money Market. The Bank will also suspend overnight repo transactions via the quotation method against Turkish Lira-denominated lease certificate in the scope of Open Market Operations. These changes will be effective as of November 3rd.
The Bank’s press release today relating to these steps to tighten monetary policy is as follows:
“Press Release on Turkish Lira Liquidity Management
In the framework of the tightening steps taken under liquidity management, effective from 3 November 2020, banks’ borrowing limits at the Central Bank of the Republic of Turkey (CBRT) Interbank Money Market will be reduced to zero, and overnight repo transactions via the quotation method against TL-denominated lease certificate in the scope of Open Market Operations will be suspended.
In pursuit of the price stability and the financial stability objectives, all necessary instruments within the framework of monetary policy and liquidity management will continue to be used decisively.”