Woman holds Turkish lira banknotes in this illustration May 30, 2022. REUTERS/Dado Ruvic/Illustration

ISTANBUL, June 10 (Reuters) – The Turkish lira traded slightly weaker on Friday after the Ministry of Finance, central bank and other state institutions announced a series of measures to support the economy.

The lira weakened to 17.24 against the dollar in early trade from Thursday’s close of 17.20.

It had firmed by 4.8pm Thursday night after the Treasury Department issued a statement announcing a raft of new “solution-focused steps” for an economy plagued by rising inflation and a slipping lira.

But it gave up those gains after measures were announced, including the issuance of income-indexed domestic bonds by state-owned companies to encourage Turks to save in lira assets and the introduction of a new maturity limit on consumer loans. Continue reading

Separately, the central bank said banks will hold additional long-term lira fixed-income securities for foreign currency deposits/participation funds as a complementary step to increasing the weight of lira fixed-income securities in the collateral pool, which comes into effect on June 24.

“The aim of this regulation is to increase the effectiveness of monetary policy as part of the liraization strategy,” it said.

Also, the reserve ratio for lira-denominated commercial cash advances was raised to 20% from the previous 10%.

writing from Daren Butler; Edited by Rashmi Aich

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