New Step to Support Turkish Lira Deposits from the Central Bank

The Central Bank of the Republic of Turkey (CBRT) continued its steps to support the transition from Exchange Rate Protected Deposits (ERPD) to Turkish Lira (TL) deposits and reduce ERPD accounts without disrupting the current HTML.

With the application instruction sent by the CBRT to banks, the lower limit of the interest rate applied to ERPD accounts was reduced from 80% to 70% of the policy interest rate. The amount of exchange rate difference to be paid by the CBRT at maturity will continue to be calculated based on the policy interest rate.

EFFECTIVE FROM JULY 22

In addition, it was reported that no payment can be made under the name of "additional yield" for newly opened and renewed accounts. Thus, it is expected that the decrease in ERPD accounts will accelerate and the share of TL deposits will increase. The changes will be effective from July 22, 2024.

Previously, the lower limit of the interest rate applied to ERPD accounts corresponded to 40% of the policy interest rate, which was at the level of 80% of the policy interest rate. With the new application instruction, the 40% level was reduced to 35%.