The Communiqué on Reserve Requirements ("Communiqué") of the Central Bank of the Republic of Turkey ("CBRT") published in the Official Gazette dated 25.12.2013 and numbered 28862 regulates the principles and procedures with respect to reserve requirements that must be kept before the CBRT. In this regard, the banks and financing companies operating in Turkey are within the scope of this Communiqué.

In general terms, the Communiqué regulates; (i) the obligations subject to reserve requirements, (ii) the calculation of these obligations, (iii) reserve requirement ratios, (iv) establishment of reserve requirement and (v) notification of the reserve requirements.

As per the Communiqué on Amendments to the Communiqué on Required Reserves published in the Official Gazette dated 19.11.2016 and numbered 29893, reserve requirement ratios and reserve option coefficients have been amended in order to provide additional FX liquidity to the financial system. In this context, the coefficients for the first segment of the FX facility of Reserve Option Mechanism have remained the same, the second segment has been decreased by 0.1 point, and the other segments have been decreased by 0.2 points.

CBRT has stated that should the reserve option utilization rates remain the same, approximately 700 million US Dollars of liquidity will be provided to financial system with these amendments.

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