Press Release on Encouraging Conversion of FX Deposits to TL Time Deposits (2021-62)
No: 2021-62
21 December 2021
Press Release on Encouraging Conversion of FX Deposits to TL Time Deposits
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The Central Bank of the Republic of Turkey has decided to provide support to deposit and participation fund holders in the event that these FX deposit accounts and FX participation funds are converted into Turkish lira time deposit accounts at the account holder’s request. |
With an aim to support financial stability by increasing the share of Turkish lira in total deposits/participation funds in the banking system, the CBRT has decided that:
- In the event that resident real persons, who already had an FX deposit account or FX participation fund denominated in US dollars, Euros or British Pounds by 20 December 2021, convert their accounts into TL time deposit accounts/participation funds, will be eligible to benefit from the incentive.
- Accounts may have maturities of 3, 6 and 12 months.
- The interest/profit share that will be paid to TL time deposit accounts/participation funds to be opened and the difference in exchange rates at the beginning and at end of the maturity will be compared, and the deposit and participation fund holder will be paid whichever is higher.
- Regardless of the exchange rate on the day the account is opened and the exchange rate at the end of the maturity, the principal and the interest/profit share will be paid to the client by the bank.
- If the amount to be calculated using the exchange rate applicable at the end of the maturity is greater than the sum of the principal and the interest/profit share, the difference will be covered by the CBRT.
- In case of a withdrawal from an account before maturity, the account holder will not be eligible for the incentive.
Contact
For further information, you may send an e-mail to basin@tcmb.gov.tr.