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AA Reports Turkey Will Not Renew FX-Linked Accounts in New Year

TURKEY
  • AA reports that Turkey will not renew the FX-protected TRY deposit accounts in 2024, and banks will not offer the accounts from January 1st.
  • These accounts were a key part of the Liraization push from the CBRT/government from end-2021, and incentivised depositors to hold local currency rather than foreign by compensating for moves in FX via very high interest rates. The schemes worked very effectively, but have proved to be very expensive over the past two years.
  • Authorities already had plans to rollback these accounts, so this marks a commitment to that pledge, rather than a material change in policy direction.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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