The increase in FX-protected TL deposits broke a new record, reaching TL 1.58 trillion with an increase of TL 25.4 billion in the week ending March 3.
Currency protected deposits increased by TL 25.4 billion in the week of March 3, according to the Banking Regulation and Supervision Agency (BDDK) data. It reached TL 1.58 trillion. Thus, a new peak level was recorded in exchange-protected deposits. With the last entry, currency protected deposits increased by 207 billion TL in 2 months. The upper interest limit on currency-protected deposits by the Central Bank was lifted at the end of January. With the letter sent to the banks by the CBRT, the interest limit on foreign exchange-protected deposit transactions to which the CBRT is a counterparty has been removed. Previously, an upper limit of 3 points was applied to the interest rate above the policy rate for currency protected deposits.
NEW APPLICATION FROM CBRT TO KKM
According to the news of Bloomberg HT, while the acceleration in the increase in currency protected deposits continued, the regulations regarding this instrument continued. Finally, the Central Bank of the Republic of Turkey (CBRT) asked the banks to add the premium offered to customers in the foreign currency conversion KKM to the interest rate. The Central Bank of the Republic of Turkey (CBRT) ended the practice of premiums in the foreign currency conversion KKM. In the current situation, banks were offering their customers a few points of premium in addition to interest in CBRT counter-party KKM transactions. In this practice, while the signage rate remained low, the difference to be covered by the CBRT in a possible exchange rate increase would increase. In the letter sent to the banks by the CBRT, it was reminded that the upper limit of interest in the foreign currency conversion KKM was removed, and the premium offered to the customers was requested to be added to the interest rate. Thus, the potential exchange rate difference to be paid by the CBRT will be reduced.