CBRT ended the premium application in KKM
The Central Bank of the Republic of Turkey (CBRT) ended the premium practice in the foreign currency conversion Currency Protected Deposit Account (KKM). In the current situation, banks were offering their customers a few points of premium in addition to interest in CBRT counter-party KKM transactions. In this practice, while the signage rate remained low, the difference to be covered by the CBRT in a possible exchange rate increase would increase. In the letter sent to the banks by the CBRT, it was reminded that the upper limit of interest in the foreign currency conversion KKM was removed, and the premium offered to the customers was requested to be added to the interest rate. Thus, the potential exchange rate difference to be paid by the CBRT will be reduced.
Upper interest limit was lifted at the end of January
According to the news in Bloomberght, the CBRT With the letter sent by the Bank to the banks, the interest limit on foreign exchange-protected deposit transactions to which the CBRT is a counterparty has been removed. Previously, an upper limit of 3 points was applied to the interest rate above the policy rate in KKM.
180 billion lira increase
After the abolition of the upper limit of interest in KKM, there was great interest in this area, especially from the legal side. In the last month and a half, the total of KKM has increased by 180 billion liras. Thus, the total of currency-protected deposits rose to a record level of 1.55 trillion TL. In the same period, there was a decrease of more than 12 billion dollars in foreign currency deposits.
CBRT put the verbal KKM warning in writing
CBRT did not sell foreign currency to SEEs