The Central Bank of the Republic of Turkiye (CBRT) will provide foreign currency to private banks on Currency Protected Deposit (CPD) returns.
In the letter sent to the banks from the CBRT, it was stated that although the interest of CPD account holders to renew their accounts on the maturity date continues, if they demand foreign currency at the end of the maturity, a liquidity need may arise in the foreign exchange market.
In this context, it was stated in the article that it was decided that the FX liquidity that the banks would need at the end of the maturity period would be directly met by the CBRT within the framework of market conditions and that banks would support their FX liquidity management.
“Transactions are carried out with all banks authorized to trade in foreign exchange markets. Banks forward their foreign exchange purchase requests to the Foreign Exchange Markets Department by telephone, by persons authorized to trade in foreign exchange markets. No commission, collateral or limit is sought for transactions. Foreign currency payments to banks are made after the banks fulfill their obligations regarding the transactions. Transactions are executed in US dollars and/or euros against Turkish lira. The foreign exchange buying rates announced by the Central Bank at 11:00 am are used for transactions. Transactions are carried out between 13.30-15.00 on full working days. The minimum transaction amount is 500 thousand USD/Euro. Banks that fail to fulfill their obligations after the transactions or that the amount of foreign currency received from the Central Bank is found to be more than the amount requested by the CPD account holders from the relevant bank at the end of the maturity may be sanctioned within the framework of the Foreign Exchange Markets Implementation Instruction. Records of telephone conversations are taken into account in any dispute regarding transaction information. In the event that the dispute cannot be resolved, the Central Bank’s regulations and evaluations shall be considered as the basis. In matters not covered here, action is taken within the framework of the Foreign Exchange Markets Implementation Instruction.”
Source: Trthaber / Prepared by Irem Yildiz
