Central Bank announces: New era for FX-Protected Deposits
The Central Bank of the Republic of Turkey has introduced new regulations to support the reduction in FX-Protected Deposit (KKM) balances.
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The CBRT has taken new steps to support the transition out of FX-Protected Deposits.
In this context, the target for the transition from KKM to TL has been reduced to 60 percent, while the minimum interest rate has been lowered from 70 percent to 50 percent. On the other hand, the practice of paying interest on required reserves for newly opened KKM accounts has been abolished.
In the announcement made on the CBRT's website, it was reported that the total target regarding the transition of KKM to Turkish Lira and its renewal has been reduced from 70 percent to 60 percent.
The announcement included the following statements:
The total target regarding the transition of KKM to TL and its renewal has been reduced from 70% to 60%.
The minimum interest rate determined for KKM accounts has been lowered from 70% of the policy rate to 50%.
The practice of interest or compensation payments on required reserves that must be maintained for KKM has been abolished for newly opened and renewed KKM accounts.