Turkey central bank provides limitless liquidity after coup

July 18, AtoZForex The heartbreaking events in Turkey have triggered a wave of disturbances all over the world, causing the Turkish investors to worry the most. But, apparently, Central Bank of the Republic of Turkey has it all under control.

Turkey central bank provides limitless liquidity after coup

This Sunday, the central bank in Turkey said it will implement all the precautionary activities to protect the financial stability in a region. Turkish central bank seeks to calm the investors after the failed coup attempt. As it is stated on its official website:

 “The central bank will provide necessary liquidity to banks limitlessly.”

Moreover, the commission rate of intraday liquidity provided to banks in Turkey will be zero, as it is reported by the central bank. Also, it stated that it will monitor the market and price moves closely.

The Turkish Deputy Prime Minister, Mehmet Simsek, believes that Turkish macroeconomics fundamentals are currently firm. He says that the government is taking all the precautionary activities possible. Also, he tweeted on Sunday:

“We decided on all necessary measures. We’re on our duty. No need to worry. Our country is normalizing rapidly after coup attempt repelled by our nation.”

The measures for the efficient functioning of financial markets

As Turkey central bank provides limitless liquidity after coup, the Official Press Release from the Central Bank was published on their website. The Press Release presents the measures that have been taken for the efficient functioning of markets in Turkey:

1) The Central Bank will provide banks with needed liquidity without limits.

2) Commission rate for the Intraday Liquidity Facility will be zero.

3) Banks will be allowed to place foreign exchange deposit as collateral without limits for needed Turkish lira liquidity.

4) Banks’ current foreign exchange deposit limits of around 50 billion US dollars may be increased and utilization conditions (collateral and cost) may be improved if deemed necessary.

5) All markets and systems (the Electronic Fund Transfer and the Electronic Security Transfer and Settlement systems) will be left open until final settlement of transactions.

6) Market depth and prices will be closely monitored.

7) All measures will be taken to ensure financial stability, if deemed necessary.

The President of Turkey, Recep Tayyip Erdogan assures that the government has restored full control of the situation.

See also: Will Greece grant Asylum to Turkey Military Coup pilots?

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