CBRT held a TL deposit buying auction for the first time in 17 years

Turkish bond

The Central Bank of the Republic of Turkey (CBRT) held TL deposit buying auctions for the first time since 2006.

CBRT opened a deposit buying auction of 80 billion TRY. This was the first TL deposit buying auction since 2006.

CBRT’s two-week TL 80 billion TL deposit buying auction received TL 193.9 billion in bids from banks. The average interest rate was 42.18 percent.

Among a series of measures announced with the CBRT’s interest rate decision was the opening of a TL deposit buying auction. In a statement released by the CBRT, it was reminded that Article 52 of the Central Bank of the Republic of Turkey Law stipulates that open market operations can be carried out in order to effectively regulate money supply and liquidity within the framework of monetary policy objectives.

In this framework, it was stated that Turkish Lira deposit buying auctions would be held in order to strengthen the monetary transmission mechanism and increase the diversity of sterilization instruments used.

Recently, it was observed that the excess liquidity in the system had increased. According to CBRT data, net funding was recorded as minus 263 billion TRY as of December 21, indicating that the surplus in the system returned to the level before the reserve requirement measures taken in November.

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