CBRT’s Communiqués on Foreign Exchange Protected Deposit Accounts
The Central Bank of the Republic of Türkiye's (CBRT) communiqués (Communiqués) introducing new regulations on Foreign Exchange Protected Deposit (FXPD) accounts have been published in the Official Gazette dated 20.08.2023 and numbered 32285. The regulations therein aim to minimize the volume of the FXPD accounts and to promote a shift toward Turkish lira deposit accounts. These regulations are summarized below:
- With the Communiqué Amending to the Communiqué on the Maintenance of Securities (No.: 2023/20) to be implemented until the calculation date of 28.7.2023, in the event of conversion below 10.00 % according to the conversion rate from foreign currency deposits/participation funds to Turkish lira deposits/participation accounts to be calculated by banks according to the procedures and principles determined by the CBRT, securities twice the amount of the missing portion shall be established as blocked. In addition, in the event that the conversion rate of the accounts provided with exchange rate protection support by the CBRT from foreign currency deposits/participation funds to Turkish lira deposit/ participation accounts with terms due in the relevant calculation period is below 50.00 %, and in the event that the conversion rate of the accounts provided with exchange rate/price protection support by the CBRT from foreign currency deposits/participation funds to Turkish lira deposits/participation accounts with terms due in the relevant calculation period is below 5.00 %, securities equal to the missing amount shall be blocked.
- With the Communiqué (No. 2023/21) Amending the Communiqué on Required Reserves (No. 2013/15), the required reserve ratio for foreign currency liabilities for demand deposits, time deposits with notice and time deposits/participation funds with maturities up to 1 month have been increased from 25% to 29%.
- With the Communiqué Amending the Communiqué on Supporting Conversion to Turkish Lira Deposit and Participation Accounts (No. 2021/14), the Turkish residents' foreign currency deposit account and foreign currency participation fund account balances denominated in US dollars, Euros and British pounds existing in banks as of 30.6.2023 will be converted into Turkish lira at the conversion rate upon the request of the account holder.
- With the Communiqué (No.: 2023/23) Amending the Communiqué on Supporting the Conversion of Gold Accounts to Turkish Lira Deposit and Participation Accounts (No.: 2021/16), the gold accounts of real persons residing in Turkey existing in banks as of 30.06.2023 will be converted into Turkish Lira at the conversion rate if the account holder so requests.
You may access the full Turkish texts of the Communiqués below:
- Communiqué Amending to the Communiqué on the Maintenance of Securities
- Communiqué Amending the Communiqué on Required Reserves
- Communiqué Amending the Communiqué on Supporting Conversion to Turkish Lira Deposit and Participation Accounts
- Communiqué Amending the Communiqué on Supporting the Conversion of Gold Accounts to Turkish Lira Deposit and Participation Accounts
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