A picture taken on August 14, 2018 shows the logo of Turkey's Central Bank at the entrance of its headquarters in Ankara, Turkey.
Turkey's central bank is opting for a different monetary tightening method as it grapples with climbing inflation, after previously signaling that its rate-hiking cycle was over.
The institution sent a directive to lenders, effective Friday, instructing them to put parts of their required lira reserves into blocked accounts.
Economic data platform Emerging Market Watch posted on X, describing the central bank as taking "another tightening step via reserve requirements."
"Last week the CBRT tightened restrictions on lira loan growth, a move that would likely have a similar impact to an interest rate hike."
Persons:
That's, Arda Tunca, Dan Murphy
Organizations:
Turkey's Central Bank, Reuters, CNBC, Capital Economics, FX, Economics
Locations:
Ankara, Turkey, Turkey's, Istanbul, Turkish, London