Central Bank’s TL step! It will start from July 22

The Central Bank of the Republic of Turkey announced that no payments will be made under the name of additional income to those who convert from Exchange Rate Protected Deposits to Turkish Lira deposits.

The Central Bank of the Republic of Turkey (CBRT) continued its steps to support the transition from Currency Protected Deposits (CCD) to Turkish Lira (TL) deposits and to reduce CCC accounts.

With the implementation instruction sent by the TCMB to banks, the lower limit of the interest rate applied to KKM accounts was reduced from 80 percent to 70 percent of the policy interest rate. The exchange rate difference amount to be paid by the TCMB at the end of the term will continue to be calculated based on the policy interest rate.

It was also reported that no payment under the name of “additional income” will be made for newly opened and renewed accounts. Thus, it is expected that the decrease in KKM accounts will accelerate and the share of TL deposits will increase.

The changes will come into effect from 22 July 2024.

The lower limit of the interest rate previously applied to KKM accounts was 40 percent, which corresponds to 80 percent of the policy interest rate of 50 percent. The 40 percent level was reduced to 35 percent with the new implementation instruction.