The implementation will start as of May 5th

Turkey’s Central Bank announced on Saturday that it will remunerate dollar-denominated required reserves, reserve options and free reserves held at the bank, as of May 5th.

The remuneration rate is the rate of interest the central bank pays on the deposits that banks hold at thecentral bank. The remuneration of dollar reserves will tighten liquidity on this currency. 

“The remuneration (interest) rate will be set on a daily basis by taking global and local financial markets conditions into account,” the written statement said. “The rate will be announced at 9.30 am (0630 GMT) local time through The Anadolu Agency and Reuters pages every day.”

The statement also added: “The overnight rate for May 5th, will be 0.12 percent per annum.”

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