452 billion lira accumulated in exchange rate-protected accounts in 60 days

The Turkish Lira currency-protected deposit and participation fund accounts, which were launched with the Turkish Economy Model, have a total balance of 452 billion TL, 193 billion TL of which is backed by the Ministry of Treasury and Finance and 259 billion TL by the Central Bank.

The Turkish Lira (TL) currency-protected deposit and participation fund accounts, which were gradually introduced with the Turkish Economy Model, reached a total balance of 452 billion TL in 60 days, of which 193 billion TL was supported by the Ministry of Treasury and Finance and 259 billion TL by the Central Bank.

Following the cabinet meeting on December 20, 2021, President Recep Tayyip Erdoğan announced that new financial alternatives and economic measures would be introduced in the Turkish economy. Accordingly, currency-protected deposit and participation accounts were put into operation with the Turkey Economy Model, which was started to be implemented in order to stop the attacks on exchange rates, stabilize the current account deficit and ensure permanent price stability in inflation.

Regulations were introduced to support the conversion of foreign currency deposit accounts and gold accounts into TL time deposits, and the amounts of deposits and participation accounts converted within this scope were exempted from reserve requirements. In the event that legal entities also convert to TL time deposits, these deposits will be considered as collateral for loans under certain conditions.

While the withholding tax rate on currency-protected accounts and conversion accounts was zeroed, foreign exchange selling auctions were started to be organized for exporters and importers who had difficulty in pricing due to exchange rate volatility.

Within a short period of 2 months, a total of 452 billion TL of exchange rate-protected deposit/participation fund balances were created in the banking sector, 193 billion TL of which was Treasury-backed and 259 billion TL of which was Central Bank-backed.

Citizens’ interest in currency-protected TL time deposits/participation funds was high. Currency-protected deposit and participation fund accounts reached 757 thousand customers in total, of which 733 thousand were real persons and 24 thousand were legal entities.

A total balance of 260 billion Turkish liras was created in the return from foreign currency deposit accounts to Turkish liras, of which 72 billion Turkish liras were real person accounts and 188 billion Turkish liras were legal entity accounts. Its share in the total balance was realized as 57 percent.

REAL PERSONS PREFERRED 3 MONTHS AND LEGAL ENTITIES PREFERRED 6 MONTHS FOR MATURITY

In these TL-protected accounts, real persons predominantly chose the 3-month maturity. Accounts with this maturity amounted to 50 percent of the total account balance with TL 224 billion.

The predominant maturity preference of legal entities was 6 months. The account balance at this maturity amounted to 176 billion liras, constituting 39 percent of the total balance.

Source: https://www.itohaber.com/haber/guncel/221389/kur_korumali_hesaplarda_60_gunde_452_milyar_lira_birikti.html

Lasiad

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