Turkey took the first step away from a tool introduced to arrest currency depreciation, as the central bank set a target for banks to reduce their sha
Turkey took the first step away from a tool introduced to arrest currency depreciation, as the central bank set a target for banks to reduce their share of such deposits.
Lenders whose clients do not convert a certain ratio of their FX-linked deposits to regular lira deposit accounts will have to purchase additional government bonds, according to a decree published in the official gazette on Sunday. Deposits in these FX-linked accounts are guaranteed a return equal to the rate of the lira’s weakening, or a pre-set regular interest in case the currency remains steady.
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