The Central Bank of the Republic of Turkey (CBRT) raised forex-lira swap market transaction limits to 40% from 30%, bankers said Tuesday.

"The total Turkish liras swap sale limit in the Central Bank's Turkish lira currency swap market was raised from 30% to 40% for swap transactions that have not matured," Anadolu Agency (AA) cited banking sources as saying.

The move came two weeks after the bank raised the limit to 30% from 20%.

Analysts said the move will pave the way for banks to swap for larger amounts thus allowing the central bank to boost its reserves.

CBRT Governor Murat Uysal last week said the bank was holding talks on swaps lines with several central banks but gave no details.

Treasury and Finance Minister Berat Albayrak on Monday also said Turkey was holding talks with trade partners about securing a swap line but added that the central bank’s reserves were adequate to meet short-term needs and highlighted its gross reserves, which stood at $53 billion as of April 24.

The central bank's reserves would be enough to meet the country's short-term foreign currency liquidity needs and are more than enough to cover the international financial debt due in the near future, Albayrak said.

The country's banking watchdog, the Banking Regulation and Supervision Agency (BDDK), in April slashed the limit for banks’ foreign exchange swap, forward and options transactions with foreign entities from 10% to 1% of a bank’s equity in a move it said was to support measures taken to protect financial stability and manage risks raised by the coronavirus pandemic.