Türkiye’s central financial institution registered a steep loss in 2023, primarily stemming from a international exchange-protected deposit scheme, official information confirmed on Sunday.
The loss reached TL 818.2 billion ($25.25 billion), based on the Central Bank of the Republic of Türkiye’s (CBRT) stability sheet printed within the Official Gazette.
The authorities has been working for months to exit the scheme referred to as KKM, launched in late 2021 to assist reverse dollarization and assist the Turkish lira.
It sought to encourage individuals to maintain their financial savings in lira by way of ensures to compensate for losses from decline in opposition to exhausting currencies.
Loss stemming from the KKM prompted the central financial institution to move on distributing revenue to the Treasury in 2023.
The KKM accounts totaled practically TL 2.29 trillion as of the week ending March 29, based on the Banking Regulation and Supervision Agency (BDDK).
It has been steadily declining from a file of over TL 3.4 trillion in mid-August final 12 months.
The scheme helped reverse a pattern of Turks flocking to exhausting foreign money and gold to guard financial savings after years of lira depreciation.
The central financial institution is now looking for to spice up the share of lira deposits within the banking system. It began in August to induce conversion from the KKM to plain lira accounts.
An unbiased audit report printed final 12 months confirmed the central financial institution posted a revenue of TL 72 billion in 2022 and TL 57.5 billion in 2021.
The central financial institution will convene its basic meeting on April 30 in Ankara to debate the 2023 outcomes.
Source: www.dailysabah.com
