The Central Bank of the Republic of Turkey (CBRT) announced that the monthly growth limit for foreign currency loans has been reduced from 1% to 0.5% and the scope of exempted foreign currency loans has also been narrowed. The CBRT stated on its website that, in order to support a tight monetary stance considering the developments in foreign currency loans, a change has been made to the required reserve ratio based on credit growth. According to the announcement, while the monthly growth limit for foreign currency loans has been decreased to 0.5%, the scope of exempted foreign currency loans has also been restricted. The CBRT had previously lowered the growth limit for foreign currency loans to 1% at the beginning of January. However, in the two months following this change, foreign currency loan growth exceeded the limit due to the impact of exempted loans.