Turkey: Record decline in foreign currency deposits of companies

by basindasaglik

According to the weekly data released by the Central Bank of the Republic of Turkey, total foreign currency deposits decreased by $5.08 billion in the week of February 4, adjusted for the parity effect. Compared to the previous week, foreign currency deposits of resident real persons decreased by 911 million dollars, while foreign currency deposits of domestic legal entities decreased by 4.17 billion dollars.

In the given week, the foreign exchange accounts of domestic residents decreased from $228.2 billion to $225.1 billion. The data showed that foreign currency deposits of real persons increased with the parity effect, but decreased when this effect was excluded. The FX-protected deposit product for legal entities created a record decline in foreign currency deposits.

The financial product at the center of the lira investment incentive, The record increase in foreign currency accounts before it was introduced by President Mr. Recep Tayyip Erdoğan was replaced by stability after 20 December with the effect of partial cycles. In this context, we observed that TRY progressed in somewhat stable bands and lower and less volatile levels were observed in the exchange rate. Since the beginning of the year, the withdrawal of foreign currency accounts, which started with real persons, continues along with withdrawals from legal entities.

We understand that there is a desire to achieve financial stability and stabilization through increasing the use of lira-based products. For this reason, we will be monitoring the developments on the currency protected deposit product in terms of the de-dollarization process in the coming period. The main phenomenon regarding the value of the lira, on the other hand, will be shaped by the uncertainties regarding economic confidence and interest rate policy. The financial dollarization rate is at 60.18% as of the week of February 4, we see a slight decrease from the rate that was 60.97% in the previous week. This rate was at the level of 54.1% in the same period of the previous year.

Kaynak: Tera Yatırım
Hibya Haber Ajansı

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