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Govt Annoucnes Interest Rate Cap for FX-Linked Deposits

TURKEY

LOCAL NEWS

  • Turkish Govt Announces Interest Rate Cap for FX-Linked Deposits. Min. interest rate will be central bank’s benchmark rate while max rate will be 300bps above that.
    • This cap may be changed by Treasury & Finance Ministry.
    • Reference exchange rates at start and end of maturity will be USDTRY, EURTRY and GBPTRY pairs announced daily by central bank
  • Turks have deposited more than 10b liras ($882m) in new FX-linked accounts as of Thursday morning, Treasury and Finance Minister.
    • Turkey doesn’t want “hot money,” aims to attract foreign direct investments with its new economic model, Nebati said.
    • Lira’s depreciation against the dollar was excessive; bubble has started to disappear following government’s measures
  • Erdogan tells AKP mayors to gear up for 2023 presidential & parliamentary elections instead of the 2024 municipal local elections in 2024 – noting the role of local government as crucial to winning the next elections.
    • Says no mark or blemish should be talked about for any AKP municipalities – highlighting corruption, arrogance and lavish spending. Says the CHP is working on changing public perception instead of focusing on service provision
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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