Singapore election outcome a ‘clear signal of trust, stability and confidence’ says PM Lawrence Wong
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A decision issued by Turkey's finance ministry has raised the minimum share of FX export proceeds that must be sold to the central bank to 35% until July 31, the central bank said on May 3.
The central bank has also hiked banks’ reserve requirement ratios for FX deposits and introduced other amendments in the macroprudential framework.
Next step, call the bankers
Since the detention of chief opponent to President Recep Tayyip Erdogan, Istanbul mayor Ekrem Imamoglu, on March 19, Turkey’s government has been struggling to ease pressure on the lira.
On April 30, bne IntelliNews noted: “Rate hikes fall short, hopes pinned on PR”.
In addressing the pressure, it is now the turn of increasing doses of macroprudential measures and non-capital controls. In the next step, central bankers will be calling bankers to ask why they are placing dollar "buy" orders. The bankers will reply that their moves stem from customer orders. The central bankers will then call the customers.
Obligation reached 70%
The obligation to surrender FX export proceeds was introduced in January 2022 at 25%. In April 2022, the rate was upped to 40%. Tourism revenues were included.
At its height, the obligation was pushed up to 70% (40% plus 30% to obtain export rediscount credits) in the first half of 2023.
In June 2024, the rate was cut to 30% from 40%.
In February, the central bank cut the obligation to 25% of FX income from the previous 30%.
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