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Banking Sector Struggles to Keep Up With FX Demand

TURKEY
  • While both individual and corporate demand for foreign currency is increasing, the banking sector is struggling to keep up with both these demands and the 5% target of FX deposit to TRY conversion, Ekonomi report. According banking sources, the interest rate in KKM accounts – which protect against TRY depreciation - rose to 30-35%. Due to the increase in the USD/TRY exchange rate, KKM accounts reached a new record level of TRY1.78trln, according to data released by the Banking Regulation and Supervision Agency.
  • Elsewhere, Turkey’s short-term external debt stock rose by 3.1% from December, according to data published by the central bank this morning. There are no other major releases on the docket today.
  • President Erdogan will speak in the city of Diyarbakir today at 1400BST/1600 local time.

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