FX-protected deposit scheme to be extended: Minister

ANKARA

The government will extend the FX-protected deposit account scheme by one year until Dec. 31, 2023, Treasury and Finance Minister Nureddin Nebati has said.

“To date, the scheme has attracted 1.4 trillion Turkish Liras with more than 2 million deposit holders. FX-protected deposits now constitute one-third of all deposit accounts,” he said in an interview with private broadcaster CNN Türk.

“Will we drop the FX-deposit scheme? No, not now. The level where foreign currency rates are now reasonable,” the minister said.

The pace of the increase in inflation has slowed, Nebati also said, reiterating that the decline will become more visible in December.

Authorities are working to fight exorbitant price increases with inspections, the minister said. More than 550,000 inspections have been conducted this year and their number will reach 1 million by the end of the year, according to Nebati.

“We reject the idea that the interest rate should be above inflation. Steps will be taken to bring down inflation to single digits,” he also said.

The main reason behind the current account deficit is energy costs, the minister furthered.

“Foreign trade deficit is $100 billion, and the current account deficit will be around $50 billion which is entirely due to energy [costs].”

With cheaper loans and the decline in energy prices, Türkiye will reach stabilization.

Nebati reiterated that inflation will decline starting December, recalling that the government has been taking measures to mitigate the effects of food inflation, such as cutting the value-added tax on basic foods.