New regulations from the Central Bank regarding foreign currency deposits

The Central Bank of the Republic of Türkiye (CBRT) aims to encourage the transition to the Turkish lira by increasing reserve requirement ratios for foreign currency deposits by 200 basis points across all maturities. Additionally, the reserve requirement ratio for funds obtained from repo transactions in foreign currency with domestic residents with a maturity of up to one year has been increased by 400 basis points, and the calculation method has been modified.

A new target has also been set for banks to increase their TL deposit rates. Banks with a corporate TL deposit rate below 60 percent will be required to increase this rate by 0.3 percentage points each month.

The Central Bank has also updated the interest or compensation payment rate applied to reserve requirements for TL deposits. Payments will now be made at a rate of 86 percent of the CBRT's weighted average funding cost.

Regulations have also been introduced to ensure export revenues are brought into Türkiye. In line with the decision of the Ministry of Treasury and Finance, the minimum sale rate of export proceeds to the Central Bank has been set at 35 percent until July 31, 2025. Furthermore, the foreign exchange conversion support rate applied to encourage the conversion of export proceeds into TL has been increased to 3 percent, and this rate will remain in effect until July 31, 2025.

News Source: 12punto