Reuters quotes two people familiar with the matter, as saying that Turkey’s central bank (CBRT) is considering tweaking reserve requirements to squeeze more credit from lenders. This effort is seen boosting lending in specific sectors of the recession-hit economy.
Sources said: “Under the plan, the central bank would strengthen the link between lending and reserve requirements and adjust settings regularly to steer credit toward sectors such as construction and energy, which remain mired in bad loans”.
“The central bank is set to sign off on the changes”, the sources added.
The Turkish Lira seems to have caught a fresh bid-wave on the above headlines, as USD/TRY extends retreat from two-week highs of 5.7915 reached on Wednesday. At the press time, the cross trades near 5.7690 region, down -0.14% on the day.
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