FX-Linked Deposit Scheme Extended to Corporates, Current Account to Slip Into Deficit

LOCAL NEWS

• Turkey extends FX-linked deposits to corporates with a 6-month maturity. The measure was first introduced for individuals only in December in an effort to end spot demand for FX.
  • Reminder: the scheme allows Turkey will make up for losses incurred by holders of lira deposits should the lira’s declines against hard currencies exceed bank interest rates
• White House’s Sullivan holds a call with presidential Spox Kalin, discussing regional issues and Kazakhstan. Ongoing efforts to avoid further Russian aggression in Ukraine and the importance of stability in the Caucasus were among the key topics
• Health Min says Istanbul is Turkey’s Omicron epicentre as case numbers surge over 68,000. In the past three weeks Turkey has noted a 6.2% increase in hospitalisations, but no rise in ICU admissions or intubation cases – speaking to the milder nature of Omicron.
  • Medical officials have issued warnings over the use of Turkovac vaccine, saying it needs another two years of study before use – Hurriyet Daily

Data:

• 0700GMT: Nov Current Account Balance exp at -2.50bn vs 3.16bn prior