A man counts his Turkish liras outside a currency exchange shop in an Istanbul's market, Friday, Aug. 10, 2018. (AP Photo/Mucahid Yapici)
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Turkey's lira pulled back from a record low of 7.24 to the dollar on Monday after the central bank pledged to provide liquidity and cut reserve requirements for Turkish banks, but its meltdown continued to rattle global markets.The fresh lira collapse on Sunday night hit Asian shares, weakened South Africa's rand and drove demand in global markets for safe currencies including the dollar, Swiss franc and yen.Bankers also said the central bank would meet banks' lira liquidity needs at the overnight rate of 19.25 percent -- 150 basis points above the benchmark weekly repo rate -- though it might not use the overnight funding on Monday because lira liquidity needs were low.The bank said it cut the lira reserve requirement ratio, a cash buffer held by banks, by 250 basis points for all maturity brackets and lowered reserve requirement ratios for non-core FX liabilities by 400 bps for maturities up to three years.The moves will free up 10 billion lira, $6 billion, and $3 billion equivalent of gold liquidity in the financial system, the bank said.
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