FinancialNews

Home

Investor Relations

Financial News

03-04-23

Turkish Central Bank Allows Short-Term Maturities for FX-Protected Lira Deposit Accounts

(MENAFN) The Turkish central bank has taken steps to promote and protect savings by allowing banks to issue short-term maturities for foreign-exchange-protected lira deposit accounts. This move also aims to limit the use of foreign currency transactions in the country's banking system. The central bank will determine the maturities of these deposit accounts based on demand, as reported in the official gazette on Saturday.

With the introduction of this new rule, the central bank can disregard the three-month minimum maturity that had been in use in the country. However, the modification does not apply to deposits converted from standard lira deposits paid by the Treasury, as noted in the decree. Additionally, there is no immediate change in the maturities.

This is the third change in FX-protected lira deposit accounts in the past week, adding additional pressure on banks to stabilize the lira. On March 30, Turkiye allowed companies with FX liabilities to open FX-protected lira deposit one-month maturity accounts. Last Friday, the central bank also allowed banks to set interest rates freely for FX-protected lira deposit accounts.

The central bank's measures aim to promote savings and limit the use of foreign currency transactions in the banking system, which can help stabilize the lira. These changes provide more flexibility for depositors and banks, allowing them to better manage their finances and respond to changing market conditions. As the Turkish economy continues to face challenges, the central bank's efforts to promote stability and protect savings are crucial for the country's financial well-being.
MENAFN03042023000045014228ID1105932337

Follow us

Terms & Conditions | Privacy & Security | Contact Us | Sitemap