Press Release on FX-Protected Accounts (2023-31)
No: 2023-31
20 August 2023
Press Release on FX-Protected Accounts
The Monetary Policy Committee stated in its decision of 20 July 2023 that the simplification process will continue in a gradual manner to strengthen macro financial stability and increase the functionality of market mechanisms.
As part of the simplification process, it has been decided to end the implementation that stipulates a target for conversion from foreign currency deposits to FX-protected deposits as well as the securities maintenance and reserve requirement practice based on the Turkish lira share.
The regulations are intended to increase Turkish lira deposits while decreasing FX-protected deposits by ensuring transition from FX-protected accounts to Turkish lira deposits.
Thus, the objective is to contribute to strengthening macro financial stability by supporting Turkish lira time deposits. In this scope, it has been decided to
- Targeting for conversion from accounts with FX-protection provided by the Central Bank to Turkish lira accounts and for renewal of FX-protected accounts at a certain ratio,
- Targeting increment for the share of Turkish lira accounts without FX protection.
The simplification process and the steps regarding the transition from FX-protected deposits to Turkish lira deposits will continue in line with the principles announced by the Monetary Policy Committee.
Contact
For further information, please send an e-mail to basin@tcmb.gov.tr.