Turkish Central Bank issues 1st rates for new Turkish lira deposits tool

ISTANBUL

Turkey's Central Bank on Wednesday released the first issuance of currency rates to be used as a basis for FX-protected Turkish lira deposit accounts.

According to bank data, the US dollar / Turkish lira exchange rate was 12.35 for buying and 12.37 for selling, while the rates were 13.9 and 13.93 for the euro, respectively.

On Monday, President Recep Tayyip Erdogan announced the new deposit account system along with other several financial measures to protect the Turkish lira's value against foreign currency fluctuations.

After the announcement, the lira’s value shot up around 40% against foreign currencies.

Comparing the foreign exchange rates at the beginning and at end of the maturity of resident real persons' accounts, the Central Bank will pay the difference, whichever is higher, to depositors.

Exchange rates are released by the bank daily.

Under the new system, regardless of the exchange rates, depositors will receive the principal and the interest/profit share.