Conversion support from gold accounts to TL deposits

It was announced that after the support for the conversion of foreign currency accounts to TL, conversion support will be provided for gold accounts as well. According to the statement of the Central Bank of the Republic of Turkey published in the Official Gazette, conversion support will be provided to deposit and participation fund owners in the event that the gold deposit and participation fund accounts of domestic real persons are converted into Turkish lira time deposit and participation accounts. Accordingly, the existing gold accounts on December 28, 2021 and the gold accounts for processed and scrap gold to be opened after this date will be converted into Turkish lira over the conversion price if the account holder requests it. The gold obtained by the bank as a result of this transaction will be purchased by the Central Bank at the conversion price, and the Turkish lira will be transferred to the relevant bank.

3 months, 6 months or a 1-year maturity term

A Turkish lira deposit or participation account with a maturity of 3 months, 6 months, or 1 year will be opened by the bank. The interest rate to be applied by the bank to the deposit account cannot be below the one-week repo auction rate determined by the Central Bank. In the event that the return to be provided to the participation account is lower than the cost incurred in the one-week resale promise and purchase transactions made by the Central Bank within the scope of open market operations with participation banks, the participation bank may cover the difference within the framework of participation banking principles, and the Central Bank will not pay for the unpaid portion.

At the end of the maturity, the price difference will be paid

At the end of the maturity, the Turkish lira deposit account holder will be paid the principal and interest, and the participation account holder will receive the participation account balance at the end of the maturity paid by the bank. If the expiry price is higher than the conversion price and the amount calculated over the price difference is higher than the interest or profit share to be paid by the bank, the amount calculated by deducting interest or profit share from the amount calculated over the price difference will be transferred to the relevant bank by the Central Bank to be paid to the depositor or participation account holder. If the Turkish lira deposit or participation account is withdrawn before the maturity date, the Central Bank will not pay for the price difference.