The Turkish central bank introduced 15 per cent required reserves for FX-protected lira deposits, a table published on Official Gazette showed early on Friday.

Bankers said the change in required reserves for lira deposits would withdraw 450 billion to 500 billion Turkish lira of liquidity from the market.

On Thursday, Turkey’s central bank hiked its policy rate by 250 basis points to 17.5 per cent, continuing to reverse President Tayyip Erdogan’s low-rates policy as it promised more tightening and said it would support it with additional measures.