In order to strengthen the monetary transmission mechanism, increase the share of Turkish lira (TRY) deposits, and support the transition from Currency Protected Deposits (CPD) to TRY deposits, the interest rate applied to TRY reserve requirements has been increased.
According to the announcement made by the Central Bank of the Republic of Turkey (CBRT), the upper limit of the interest rate applied to the reserve requirement amount to be established for CPD, depending on the renewal and transition rate to TRY, is set at 60 percent of the policy rate, and the upper limit of the interest rate applied to the reserve requirement amount to be established for TRY deposits, depending on the transition rate to TRY, is set at 80 percent of the policy rate.
Thus, the maximum interest rates that banks meeting the specified conditions can receive for the reserve requirement amount established will be 30 percent in CPD accounts and 40 percent in TRY deposit accounts.
In its press release on February 5, the CBRT stated that deposit banks meeting the specified conditions for strengthening the monetary transmission mechanism, increasing the share of TRY deposits, and supporting the transition from CPD to TRY deposits will be subject to interest on their reserve requirements for TRY deposits and CPD accounts every three months.
source: aa.com.tr/ prepared by Melisa Beğiç