CBRT Raised the Deposit Interest

CBRT Raised the Deposit Interest CBRT raised the deposit interest. Deposit interest is 18 percent as of today. The Central Bank of Turkey (CBRT) after the upgrade policy rate to 15 percent last month, increased the deposit interest rate to 16-16,5 percent from 15 percent level. The rate of the said interest has increased again today. Speaking to the Bloomberg HT channel, three top bankers said that as of Monday, December 14, deposits had reached 18 percent. Accordingly, deposit rates increased by 3 points in the last month. Emphasizing that every bank in the sector needs this after the required reserve regulation, the bankers explained that the deposit interest rates increased for this reason. The Central Bank has regulated required reserves, which is one of the desired moves in the normalization process after the coronavirus epidemic, and eliminated the requirement for loan growth for required reserves to be applied. With this change, Turkish lira required reserves were increased from 4 percent to 6 percent for demand deposit, up to 1 month and up to 3 months deposit / participation funds.   Foreign Exchange Deposits Increased by 80 Percent in the Last Year Stating that the return from Turkish Lira (TL) to foreign currency has recently decreased as a reflection of the increase in deposit interest rates, the bankers stated that there has been a slight return from foreign currency to TL since last week. Bankers stressed that they expect this trend to continue this week as well. Noting that foreign exchange deposits have increased by 80 percent in the last year, the bankers noted that the conversion from foreign currency to TL should accelerate further, but this rapid return can occur if deposit rates are around 20 percent.       Source: Bloomberg HT