CBRT increased the weekly repo auction size to 300 billion TL

The Central Bank of the Republic of Türkiye (CBRT) increased the size of the weekly repo auction to 300 billion Turkish Liras. The amount of the weekly repo auction held on Wednesday was 1 billion Turkish Liras.

Market expectation was that the new tender would be worth 100 billion Turkish Liras.

FUNDING AMOUNT INCREASED

CBRT announced a series of measures regarding liquidity management, taking into account the developments in financial markets.

In this context, the bank announced that the amount of funding to be provided through weekly repo auctions would be increased, taking into account liquidity conditions.

It was also stated that the borrowing limits of banks in the Interbank Money Market, which operates within the CBRT, would be updated by taking into account the current balance sheet sizes of the banking system.

WHAT DOES THE FUNDING INCREASE MEAN?

The CBRT's increase in the amount of funding it will provide in the weekly repo auction paves the way for banks to borrow more Turkish Lira from the Central Bank. Thus, it is aimed to increase the liquidity in the market (the amount of ready money that banks and the financial system can use). This step means supporting the flow of money in financial markets while making it easier for banks to meet their short-term money needs.