NEWS Finance        18/08/2020

Turkish Central Bank to halve overnight borrowing limits

The Turkish Central Bank has announced today that it will halve overnight borrowing limits of lenders for overnight transactions as of August 19th, 2020.


In its press release, the Bank said “In the framework of the tightening steps taken under liquidity management, banks’ borrowing limits at the Central Bank of the Republic of Turkey (CBRT) Interbank Money Market for O/N transactions will be reduced to half of their current limits effective from 19 August 2020.”


Following the pressure on the Turkish lira earlier this month, the Bank has been looking at more backdoor options to tighten money supply without taking the direct option of increasing the main policy interest rate, which is still at 8.25%. On August 12th, the Bank cut to zero liquidity limits offered to primary dealers as part of open market operations to reduce the supply of cheap funding. Market analysts are now looking to the Bank’s Monetary Policy Committee meeting on Thursday to announce its decision on interest rates.



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 increases to 75.45% in May 2024       Turkey’s official unemployment rate is 8.6% in March 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 164.1 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