Foreign-exchange protected deposits shrink by 25.2 billion dollars in the last 11 weeks

The decline in Foreign-exchange protected deposit (KKM) accounts has continued for the last 11 weeks. According to information compiled from Banking Regulation and Supervision Agency (BDDK) data, savings in KKM accounts fell from 3 trillion 368 billion 652 million liras in the week of August 25 to 2 trillion 921 billion 667 million liras in the week of November 3, a decrease of 13 percent. A melting of 447 billion liras has occurred in the last 11 weeks.

When viewed in dollar terms, the size of KKM in the week of November 3 was 102.1 billion dollars. In the week of August 25, the dollar-denominated size of KKM had been 102.1 billion dollars. Since that week, a decrease of approximately 25.2 billion dollars has been observed.

INCREASE IN RESERVE REQUIREMENTS SHOWED ITS EFFECT

The melting in KKM was triggered by the Central Bank's increase in reserve requirements for KKM. The CBRT's Communiqué on Amending the Communiqué on Reserve Requirements was published in the Official Gazette on November 2. According to the communiqué, the reserve requirement ratio for maturities up to 6 months, where KKM is concentrated, was increased by 5 points to 30 percent. The reserve requirement ratio for maturities up to 1 year and for those with a maturity of 1 year or longer was increased from 5 percent to 10 percent. In September, the CBRT had raised the mandatory reserve ratio for maturities up to 6 months, where KKM is concentrated, from 15 percent to 25 percent, and had stated the reserve ratios for maturities up to 1 year and 1 year or longer as 5 percent.

News Source: İHA