New swap move from the Central Bank!
TL interest rate used in the Central Bank of the Republic of Turkey increased 13.25 percent weekly swap transactions.
Within the scope of the regulation, the TL-denominated interest rate in FX quotation swap transactions made against foreign currency / gold was raised from 11.75 percent to 13.25 percent.
Within the framework of gradual tightening steps in the CBRT's monetary policy, the TL interest rate applied against foreign exchange / gold was increased. The step in question was a continuation of the tightening steps taken recently.
Currently, approximately 60 percent of the funding requirement of the system is provided by the CBRT through FX swap transactions. In this context, swap transactions are carried out by the CBRT through one-week quotation method and 1-3-6 months traditional method auctions. In addition, swap transactions are carried out in the CBRT BIST Swap Market in line with the interest rates applied in the quote swap market. With the step taken, the TL interest rate applied in quotation swap transactions at the CBRT was increased by 150 basis points.
The decision in question was a continuation of the steps taken by the CBRT to tighten monetary policy. Increasing the interest rate applied in swap transactions, which have an important share in the funding need of the system, was a continuation of the steps taken to tighten monetary policy. In the previous period, important steps were taken by the CBRT to raise the weighted average funding rate such as not providing funding in the BIST Repo-Reverse Repo Market, zeroing the BPP limits and stopping the quote repo transactions. This step taken within the scope of the continuation of these steps indicates that the CBRT is continuing its determined steps towards tightening.