Turkish Central Bank reveals measures to ensure financial stability after coup attempt
ANKARAThe Central Bank has announced a raft of measures to minimize the adverse effects of the failed military coup attempt in Turkey, including unlimited liquidity.
“The Central Bank will provide banks with necessary liquidity, without limits,” said the Bank in a written statement on July 17, following top level meetings.
It also noted that the commission rate for the intraday liquidity facility will be zero.
“Banks will be allowed to place foreign exchange deposits as collateral without limits for necessary Turkish Lira liquidity,” said the Bank, adding that its current foreign exchange deposit limits of around $50 billion may be increased and utilization conditions (collateral and cost) may be improved if deemed necessary.
The announcement came after Deputy Prime Minister Mehmet Şimşek tweeted that Turkey’s macro fundamentals are solid and the government is taking all necessary precautions.
“I have spoken with the Treasury undersecretary and the Central Bank governor. We have decided to take all necessary precautions. We are in charge and there is no need to worry,” Şimşek said, adding that he would be holding a teleconference with international investors today.
The Central Bank also stated that market depth and prices would be closely monitored.
“All necessary measures will be taken to ensure financial stability,” it added.