Turkey Boosts Reserve Rules on Some Deposits to Support Lira

Turkey raised the amount of cash lenders must park with the central bank against some deposits, as part of measures to support the lira after it became the worst-performer in the Europe, Middle East and Africa region.

Reserve requirement ratio for so-called KKM accounts, which compensate depositors for lira depreciation, has been increased to 40% from 33%, the monetary authority said in a statement on Saturday. It also reduced the minimum interest rate such accounts earn to 40% of the policy rate, from 50% earlier.