Turkish Central Bank Unveils 2% Support For Firms Converting Forex From Abroad Into Liras
26 Januar 2023 - 03:16AM
Turkey's central bank said on Thursday that it will provide an
incentive for the conversion of firms' foreign exchange obtained
from abroad into Turkish liras to support the "liraization" in
Under its Monetary Policy and Liraization Strategy for 2023, the
Central Bank of the Republic of Turkiye, or CBRT, would provide
firms, who sell their forex from abroad to the central bank, a FX
conversion support corresponding to 2 percent of the amount
converted into Turkish liras, in return for their pledge, which
according to Reuters was that firms will not buy forex for a period
decided by the central bank.
Firms, who sell at least 40 percent of the foreign exchange they
have brought into the country from abroad to the CBRT, will be able
to deposit the remaining part of the forex they brought from abroad
into conversion accounts that protect those lira deposits against
foreign exchange depreciation, the bank said.
In return for their pledge, firms will be provided with a FX
conversion support of 2 percent of the amount converted into
Turkish liras, the bank added.
Banks will determine if the forex sold to the CBRT and forex to
be converted into Turkish lira deposit and participation accounts
have been obtained from abroad.
Read more: Turkish Consumer Confidence Strongest In 16
Elsewhere, Bloomberg reported that the CBRT is planning a new
regulation to require banks to hold collateral for forward
contracts, in a bid to reduce demand for hard currency in the spot
market. This measure is meant to deter banks from selling currency
derivatives to their customers, the news outlet reported, citing
unidentified people close to the discussions.
The Turkish lira is trading near record lows and has been among
the worst performing emerging market currencies in 2022. The
central bank aims to keep it stable to rein in the country's
Last week, the central bank left its key interest rate unchanged
at 9.00 percent for the second straight month as inflation slowed
notably from near 85 percent to a nine-month low of 64 percent.
The bank has lowered the policy rate by a cumulative 500 basis
points since last August.
Later on Thursday, CBRT Governor Sahap Kavcioglu is set to
present the first quarterly inflation report of this year that will
reveal the price projections and give hints on the interest rate
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