The Central Bank of the Republic of Turkey (CBRT) on Monday increased reserve requirement ratios for foreign currencies by 100 basis points for all maturities to support financial stability.

"Reserve requirement ratios for FX deposits/participation funds have been increased by 100 basis points for all maturity brackets, and the remuneration rate for U.S. dollar-denominated required reserves, reserve options and free reserves held at the CBRT has been decreased by 100 basis points and set as 1%," it said in a statement.

The bank expects nearly $2.1 billion of FX liquidity withdrawn from the market as a result of the move.