The Turkish Lira failed to regain much of the recent value it has lost against the US dollar despite announcements on Monday from the country's finance minister, Berat Albayek, that the country would cut reserve requirements for Turkish banks and provide additional liquidity requirements in a bid to ease investor concerns.

The Lira has fallen in value by 42 percent against the US dollar in the year to date, standing at 6.94 per US$1 at 1419 BST. The rapid decline has spooked investors and sparked fears of a contagion spreading to other emerging markets, impacting currencies and equity markets. In the Middle East, banks with exposure to Turkey were affected, with a decline in the value of Emirates NBD dragging down the Dubai Financial Market.

An analyst from Indosuez Wealth Management also warned on Sunday that despite robust business models and decent capital buffers, Turkish banks could be affected by the Lira's decline given that many clients have loan obligations in foreign-denominated currencies.

(Writing by Michael Fahy; Editing by Shane McGinley).

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