Corporates are also included in the foreign exchange conversion target, the range for additional ZK has been expanded


The Central Bank widened the range of additional required reserve liabilities for banks that could not meet the rate determined for conversion from foreign currency accounts to TL. Previously, banks with a conversion rate below 5 percent were establishing an additional 3 percent required reserve, with banks with an additional 5 percentage point conversion rate between 5-10 percent. Now, banks with a conversion target below 10 percent will set aside 5 percent, and banks with a 10-20 percent reserve requirement will set aside an additional 3 percent.

In addition, the requirement to catch a certain rate in the conversion from foreign currency to TL, which previously covered only individual accounts, was also valid for legal person and company accounts.

In the current practice, the additional FX reserve requirement ratio is applied to banks only according to the real person conversion rate, while banks with a real person conversion rate below 5 percent set an additional 5 percentage points, and banks with a 5-10% FX reserve requirement set an additional 3 percentage points.

With the Central Bank amendment published in the Official Gazette, the legal person conversion rate was added as a target condition in addition to the natural person conversion rate.

The said regulation change will be effective as of the calculation date of September 2, 2022 and the deposit/participation banks will start their facilities on September 16, 2022 within the scope of the regulation change.

Within the framework of the liraization strategy, the Central Bank made a differentiation in the additional required reserve ratios determined for foreign currency deposit accounts. This regulation was first effective from the calculation date of 27 May 2022 and the establishment date of 10 June 2022.

With the Communiqué Amending the Communiqué No. 2022/25 on Required Reserves (Number: 2013/15) of the Central Bank, since the sector in general has reached the current targets in the conversion from foreign currency deposit/participation funds to time deposits, it is necessary to update the transformation target values ​​in order to ensure the continuity of the application in the intended direction and It was decided to add the legal entity transformation target as a condition.

Source: Dünya Gazetesi by

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