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Turkish central bank aims to increase lira share in bank deposits

IANS | December 31, 2022 10:18 AM

ANKARA: Turkey's central bank announced its plan to increase the share of the Turkish lira in the country's bank deposits to 60 per cent by the middle of 2023.

"Policies to be implemented under the 'Liraization Strategy' will continue to be used in a strengthened manner to permanently increase the weight of the Turkish lira in both assets and liabilities of the banking system. Accordingly, the liraization target in deposits is set at 60 per cent for the first half of 2023, " said the Turkish central bank said in a statement on Friday.

The central bank has been implementing a "liraization" policy aiming to stabilise the pressure on its local currency. The current lira share in Turkish banks stands at 53 per cent, Xinhua news agency reported.

It also noted its decision to maintain the 5 per cent medium-term inflation target.

The country's annual inflation eased to 84.4 per cent in November, from a 24-year high of 85.5 per cent the previous month, slowing for the first time in 18 months, official data showed.

The Turkish government embarked in late 2021 on a loose monetary policy to boost exports and create new jobs to lower the chronic current account deficit, which accentuated the national currency's decline against hard currencies.

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