Türkiye’s central financial institution despatched a letter to native lenders on Monday, warning them in opposition to conducting foreign exchange transactions with overseas banks throughout “off hours” and providing deposits with very excessive rates of interest to keep away from bond holding necessities.
The central financial institution has launched guidelines in current months to cut back the hole between the coverage charge and lending charges and encourage loans to sectors together with exports and manufacturing.
The newest rule mandates lenders with lower than half of deposits within the lira in 2023 to carry a further 7 share factors of presidency bonds. Authorities have additionally sought to dissuade foreign exchange holdings.
The central financial institution mentioned banks shouldn’t direct prospects to carry funds from lira loans in demand deposits and they need to additionally not permit lira loans to be deposited in accounts below a scheme that protects in opposition to foreign exchange depreciation, it mentioned.
Such points are “not supportive of establishing financial stability,” the central financial institution mentioned, including that lenders ought to make the utmost effort to abide by laws.
The central financial institution had already warned banks final week about conducting foreign exchange sale-purchase transactions in a single day, saying it’s going to take “necessary measures” if the difficulty continues.
In the previous, if central financial institution requests on numerous points haven’t been adopted, it has taken measures resembling requiring banks to carry authorities bonds.
