Turkey Ready to Double Foreign Currency Reserves for Banks

(Updates with comment in second paragraph, bonds in last.)

Oct. 26 (Bloomberg) -- Turkey’s central bank has prepared a measure allowing banks to keep as much as 40 percent of their reserves in foreign exchange, doubling the ratio from 20 percent, governor Erdem Basci told reporters.

The measure is ready and may take effect at any time, Basci said at a news conference today.

The lira extended earlier gains, rising 1 percent to 1.7625 per dollar at 10:44 a.m.

Yields on two-year bonds rose 32 basis points to 9.94 percent after Basci said the central bank increased its inflation target for this year to 8.3 percent.

--Editor: Aydan Eksin

To contact the reporters on this story: Mark Bentley in Istanbul at mbentley3@bloomberg.net; Ali Berat Meric in Ankara at americ@bloomberg.net

To contact the editor responsible for this story: Mark Bentley at mbentley3@bloomberg.net