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Government Tweaks Tax Exemptions in Further Liraization Effort

TURKEY
  • In an article covering the renewed weakness in TRY, Cumhuriyet notes that returns from the government’s FX-protected deposit scheme KKM begin today and is estimated to create as much as $30bln across five weeks and could generate new FX demand.
  • Further policy tweaks have been made by government to lean further into Liraization, with the extension of corporate tax exemptions for both FX gains and interest income for firms that actively convert H1 FX reserves into TRY via the FX-protected deposit scheme. The Gazette announcement also confirms that these tax exemption thresholds could be rolled into Q3 this year.
  • The Istanbul-based center for coordinating the Ukraine grain export corridor officially opens today. Despite the formal opening ceremony, concerns linger over the prospects for the Ukrainian grain export corridor after strikes on Odessa this weekend, but a spokesman for Turkey’s Erdogan has claimed that exports could start within a week, and exports are seen totaling 25mln tonnes by the end of this year.

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