The Central Bank of the Republic of Turkey (CBRT) announced on December 5, 2024 that it has re-evaluated the collateral discount rates valid in Open Market Operations, Interbank Money Market and Foreign Exchange Market transactions and within this scope, The discount rate of CPI-indexed Government Domestic Debt Securities (DIBS) and lease certificates was reduced from 80% to 30%. reported.
This regulation is considered as a step taken within the framework of the simplification and normalization steps in the collateral system of the CBRT. Analysts state that the change in question is a positive development in terms of market functioning.
The updated Turkish Lira and Foreign Exchange Markets Application Instructions can be accessed from the “Markets Related Legislation” section of the CBRT’s website.
This step is a continuation of the changes made by the CBRT in its previous practices. For example, the discount rate for CPI-indexed securities was increased from 2022% to 30% in 50.
Later, in 2023, this rate was increased from 70% to 80%.
With this latest regulation, the CBRT aims to increase market liquidity and support the efficiency of the financial system by reducing collateral discount rates.
