The quantity of Türkiye’s international currency-protected Turkish lira deposits continued its regular decline final week as authorities look to terminate the scheme, which has weighed closely on price range, inside 2025.
The deposits underneath the scheme, referred to as KKM, decreased to TL 1.11 trillion (practically $31 billion) from TL 1.13 trillion within the week ending Jan. 3, knowledge by the banking watchdog, BDDK, confirmed on Thursday.
That marked the 72nd week of uninterrupted reductions within the quantity of KKM, Treasury and Finance Minister Mehmet Şimşek mentioned.
“KKM stock has fallen from its peak of TL 3.4 trillion in August 2023 to TL 1.1 trillion,” Şimşek wrote on social media platform X. “The share of KKM in total deposits decreased from 26.2% to 5.9%,” he added.”
Under the scheme, adopted in late 2021 to assist reverse dollarization and counter a steep fall in lira, the central financial institution has been defending deposits by overlaying depreciation prices.
But authorities have been searching for to part it out steadily and transition deposits into common lira accounts, partially by dissuading firms and people from renewing the KKM accounts.
Last month, Şimşek mentioned the scheme can be terminated with out creating any volatility within the markets. The central financial institution additionally introduced that it could finish in 2025.
“We will continue our policies that will strengthen macro-financial stability and increase confidence in the Turkish lira,” Şimşek wrote on Thursday.
The lira has made a gradual restoration in actual phrases since its steep 2021 decline. It depreciated about 16.5% towards the U.S. greenback final 12 months, the smallest annual decline since 2020.
The weekly bulletin by the BDDK additionally confirmed banking sector’s loans elevated by TL 57.4 billion to TL 15.96 trillion within the week by means of Jan. 3.
Total deposits fell from practically TL 19 trillion to TL 18.66 trillion. Consumer loans grew by TL 7.7 billion, reaching above TL 2 trillion. Non-performing loans rose by TL 6.2 billion to TL 293.7 billion.
Source: www.dailysabah.com