Exit from the currency-protected deposit continues

SAFAKNA TURKEY – The decline in deposits with currency protection continued last week as well.

According to the Agency for Banking Regulation and Supervision (BDDK), in the week since January 6, the amount of currency-protected deposits decreased by 45.3 billion Turkish liras to 1.37 trillion Turkish liras. Thus, over the past two weeks, an outflow of 93 billion Turkish liras was recorded from exchange-protected deposits.

The FX Protected Deposit (KKM) application for foreign currency deposits and participation funds of resident legal entities in Turkey has been extended until December 31, 2022.

According to the communiqué amending the Central Bank Communiqué on Supporting the Transfer of Deposit and Participation Accounts in Turkish Lira, published in the Official Gazette, the deadline for the conversion of deposit accounts and participation funds in foreign currency in banks into Turkish Lira by local legal entities is September 30 2022. , Extended from December 31, 2022

Accordingly, balances of participation fund accounts in foreign currency deposits in dollars, euros and pounds sterling in banks between December 31, 2021 and December 31, 2022 of entities within the scope can be converted into Turkish lira at the conversion rate and included in KKM if required by the account holder.