Turkish Central Bank doubles FX transaction limits to $10.8 billion
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The Turkish Central Bank has doubled the transaction limits of the Foreign Exchange and Banknotes Markets in order to prevent the recent problems in the international credit markets from affecting the orderly flow of liquidity in the country’s financial markets, the bank announced in a statement Thursday. (UPDATED)
"Although there is no foreign exchange liquidity problem in the Turkish banking system, transaction limits of the Foreign Exchange and Banknotes Markets will be doubled starting from 24 October 2008 for each institution and will reach $10.8 billion in total, in order to ensure that the system meets its possible foreign exchange liquidity needs smoothly in the upcoming months," the statement said.
The level of the transaction limits in the Foreign Exchange and Banknotes Markets were revised as of Oct. 14, 2008, and set at $5.4 billion in total.
The Turkish Central Bank recently resumed the foreign exchange depot market, in which it is the financial intermediary and regulator, in order to maintain confidence in the system and sustain foreign currency liquidity. The depot market was closed in December 2002.