Increase in exchange rate protected deposits in Turkey stops

The increase in the amount of currency-protected deposits, which lost its attractiveness with the horizontal course of the currency (US dollar), has come to a standstill. Last week, the amount of the increase fell below 1 billion TL.

With the horizontal course of exchange rates and low interest rates, there has been a remarkable development in exchange rate protected (KKM) deposits and the rate of increase of has decreased in recent weeks.

According to BDDK (Banking Regulation and Supervision Agency) data, the amount of KKM increase remained at 982 million TL in the week of November 11. This figure was recorded as the lowest weekly increase since the end of December 2021, when KKM was commissioned.

The amount of KKM reached 1 trillion 474 billion TL as of November 11.

While paying the exchange rate difference in the KKM has come to a standstill with the horizontal exchange rate, those who evaluate their savings in the KKM receive only interest revenues. This rate also fell below 3 percent for the last 3-month maturity.

It is stated that many people in KKM have started to turn to alternative vehicles instead of renewing at the end of the term.

SOURCE: sozcu.com.tr/2022/finans/kur-korumali-mevduatta-artis-durdu-7485129/?