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Turkish cenbank acts to boost use of lira assets as collateral -bankers

Published 06/06/2022, 04:58 AM
Updated 06/06/2022, 05:01 AM
© Reuters. FILE PHOTO: A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey, August 21, 2015. REUTERS/Murad Sezer

© Reuters. FILE PHOTO: A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey, August 21, 2015. REUTERS/Murad Sezer

ISTANBUL (Reuters) - The Turkish central bank has taken steps to increase the weight of lira-denominated assets in the collateral system as part of its currency strategy and steps in this direction will continue to be taken, bankers said on Monday.

© Reuters. FILE PHOTO: A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey, August 21, 2015. REUTERS/Murad Sezer

From June 24, the central bank will require that a minimum of 45% of collateral in swap transactions will come from the domestic government bonds basket, with the discount rate for CPI-indexed securities used as collateral raised to 30% from 15%, the bankers said.

The central bank declined to comment on the moves.

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