Required reserve increase is planned in KKM

Additional liquidity tightening measures are coming from the Central Bank in order to withdraw the excess liquidity in the market due to currency-set deposits.

According to the information obtained by Bloomberg HT, the Central Bank will sterilize the excess liquidity in the market through the required reserves to be applied to the currency protected deposit accounts.
Recently, both the increase in the exchange rate-protected deposit rates and the excess liquidity in the market due to the increase in the exchange rate created the risk of reducing the effectiveness of the monetary policy. In order to eliminate this effect, the Central Bank will tighten the liquidity with the required reserve policy.

It was learned that the Central Bank also aims to create a contractionary effect in the credit policy through demand-restrictive measures. In this context, tightening measures may come in some of the consumer loans, excluding loans extended to low-income people.

The relevant regulations are expected to be announced shortly.

The money in KKM accounts has exceeded 2.9 trillion

According to BRSA data, Currency Protected Deposit accounts increased by 4.06 percent in the week of 14 July.
Net inflow reached the highest level in nine weeks with 115.6 billion liras.
Thus, the total of currency-protected deposits was TL 2.96 trillion last week.