Turkey Stops Converting Deposits to Local Currency

The Central Bank of Turkey announced on Sunday that it has ceased targeting the conversion of foreign currency deposits into lira deposits protected from exchange rate fluctuations, adding that this aims to enhance financial stability. The bank stated in a statement, "As part of the simplification process, it was decided to end the procedure that involves targeting the conversion of foreign currency deposits to deposits (in local currency) protected from exchange rate fluctuations." The statement added that the new measure aims to increase deposits in Turkish lira while reducing deposits that are protected from exchange rate fluctuations.