Strong drop in Protected Currency Deposits
According to the weekly bulletin published by the Banking Supervision and Regulation Agency (BDDK), Currency Protected Deposits (KKM) fell sharply in the last week of the year.
According to information in BRSA’s weekly newsletter, TL deposit and participation accounts with currency protection were reduced from TL 1 trillion 463.2 billion to TL 1 trillion 415.3 billion. Therefore, the decrease in KKM deposits was about 48 billion TL in the last week of the year.
In addition, the total deposits in banks were reduced from TL 8 trillion 787 billion to TL 8 trillion 865 billion.
Chart: BRSA
The flat course of the exchange rate and the fall in interest rates played a major role in the decline of interest in KKM. Investors, who turned away from KKM due to low returns, lost interest in KKM. KKM’s volume decreased by about 59.1 billion TL compared to the peak on November 11.
EXTENDED UNTIL THE END OF 2023
After the December currency crisis, the government introduced currency-protected deposits and introduced a regulation for depositors to value their investments in the bank through TL and cover any possible exchange rate loss through the Treasury.
Deposits with monetary guarantee can be opened with maturities of 3, 6 and 12 months. According to the latest regulation, KKM accounts can be opened until the end of 2023.