Over $880 mln put into lira deposit accounts

ISTANBUL

The total amount in the FX-anchored deposit accounts reached 10 billion Turkish Liras ($880 million) as of Dec. 23 morning, Treasury and Finance Minister Nureddin Nebati has said.

According to the new scheme introduced on Dec. 21, the Treasury and the Central Bank will reimburse losses on converted lira deposits against foreign currencies.

“There were speculations and manipulations in foreign exchange rates,” Nebati told private broadcaster NTV late on Dec. 23.

“The lira will reach its optimal level,” he added.

After private lenders launched deposit account products in accordance with the new scheme led by the three state lenders, the total volume of money in those deposit accounts started accelerating “in a geometrical rise,” said Nebati.

Turkey’s new economic model, which is based on high level of exports and lowering the current account deficit, will show positive results and rapid transformation before next summer, he also said.

“This is a special model that will attract direct investment,” he added, noting that Turkey received $12.7 billion in direct investment in the first 11 months of 2021.

The government will introduce new facilities, including value added tax deductions and credit guarantees for exporters, to support economic growth and prosperity in the first weeks or months of next year, according to the minister’s remarks.

Meanwhile, the Treasury and Finance Ministry on Dec. 24 introduced a cap of 17 percent to interest rates to be applied to the FX-protected deposit accounts. The Central Bank’s policy rate - one-week repo rate - stands at 14 percent, but some banks started offering interest rates as high as 17.25 percent amid competition between lenders.