(MENAFN) The Turkish central bank has recently introduced a new set of measures aimed at promoting and safeguarding savings among its citizens. One of these measures allows banks to issue short-term maturities for foreign-exchange-protected lira deposit accounts. This move is also part of the bank's efforts to limit the use of foreign currency in the country's banking system. According to reports, the central bank will determine the maturities of these deposit accounts, and they will only be enabled if there is sufficient demand for them.
The introduction of this new rule is expected to have a significant impact on the banking sector in Turkey. For one, it allows the central bank to disregard the three-month minimum maturity that had been previously enforced in the country. However, it's important to note that the modification does not apply to deposits converted from standard lira deposits paid by the Treasury. The decree also highlighted that there are no immediate changes in the maturities.
This latest move by the Turkish central bank is the third change it has made to FX-protected lira deposit accounts in the past week. The bank has been under increasing pressure to stabilize the lira, and these measures are part of its efforts to achieve this goal. It is hoped that by promoting and protecting savings, the bank will be able to reduce the use of foreign currency in the country's banking system, which in turn will help to stabilize the economy.
It is worth noting that on March 30, Turkiye permitted companies with FX liabilities to open FX-protected lira deposit one-month maturity accounts, which was another move aimed at stabilizing the lira. These measures are a clear indication of the Turkish central bank's commitment to promoting stability and safeguarding the country's financial system.
MENAFN03042023000045014146ID1105933924
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.