Türkiye’s central bank said on Sunday it had stopped targeting conversion of foreign currency deposits into Turkish Lira deposits that protected from exchange rate fluctuations, adding that this aimed at enhancing financial stability.
“Within the framework of the simplification process, it was decided to terminate the procedure that provides for the targeting of converting foreign currency deposits into (local currency) deposits that are protected from exchange rate fluctuations,” the Turkish central bank said in a statement.
The statement added that the new measure aims to increase deposits in Turkish currency while reducing deposits that enjoy protection from exchange rate fluctuations.
It’s noteworthy that in light of the deterioration of the exchange rate of the Turkish lira, with the increase in local tensions in the country, on the backdrop of the economic situation.
The Turkish Central Bank, last July, resorted to returning to raise interest rates from 14 to 17.5% in an attempt to stop inflation, indicating that most of the decisions taken recently didn’t contribute to any improvement in the bad situation in the country.