NEWS Finance        22/05/2020

Turkish Central Bank increases swap limit to 50%

Turkish Central Bank has raised forex-lira swap market transaction limits to 50% from 40% for swap transactions that have not matured.  This move, which has come two weeks after the Bank raised the limit to 40% from 30%, and which will be effective as from May 27th, was introduced to further support the Bank’s growing need for foreign currency to strengthen reserves and protect the Turkish lira.


The Treasury and Finance Minister Berat Albayrak said earlier this month that discussions are continuing with trading partners in order to secure swap lines from their central banks, and added that the Turkish Central Bank’s reserves were adequate to meet short-term needs. Gross reserves stood at USD 51.5 billion as of May 7th. Albayrak added that the central bank's reserves would be enough to meet the country's short-term foreign currency liquidity needs and are more than enough to cover the international financial debt due in the near future.


The country's banking watchdog, the Banking Regulation and Supervision Agency (BDDK), in April slashed the limit for banks’ foreign exchange swap, forward and options transactions with foreign entities from 10% to 1% of a bank’s equity in a move to support measures taken to protect financial stability and manage risks raised by the coronavirus pandemic.


Turkey’s net minimum wage has been raised 49% to TL 17,002 (USD 577) as of 01.01.2024       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate decreases to 71.60% in June 2024       Turkey’s official unemployment rate is 8.4% in May 2024       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 85,372,377 as of 2023 yearend       No. of foreigners visiting Turkey in 2023 increases 10.4% to 49.2 million       Turkey’s private sector foreign debt is USD 164 billion as of yearend 2023       Turkey’s economy grew 4.5% in 2023       FDI to Turkey is USD 10.6 billion in 2023       Turkey’s current account deficit is USD 45 billion in 2023