The Central Bank of the Republic of Turkey (CBRT) has put an end to the practice of converting foreign currency deposits into exchange rate-protected deposits and the issuance of additional/discounted securities based on TL share, with the aim of increasing TL deposits and reducing exchange rate-protected deposits.
Four communiqués from the CBRT were published in today’s issue of the Official Gazette. According to these, as part of the simplification process, the practice of converting foreign currency deposits into exchange rate-protected deposits and the issuance of additional/discounted securities based on TL share have been terminated. With these regulations, it is aimed to increase TL deposits and enable transition from exchange rate-protected accounts to TL deposits with the final target of reducing exchange rate-protected deposits.
The additional financial cost brought by foreign currency deposits (system) has been a major burden on Turkish economy and it’s no wonder the administration is now desperately trying to get rid of it.
