CBRT will pay interest on the excess of the foreign currency reserve requirement line

The Central Bank (CBRT) will pay 4.5 percent interest for free foreign currency accounts that banks maintain in their reserve requirements.

The CBRT announced that the interest rate for free foreign currency accounts is 4.5 percent.

Interest payments will be made on the excess amount of the balances of the deposit accounts in foreign currency denominated in TL, that is, on the difference between the average amounts established and the average amounts required.

A banking source, who told Reuters, said that if banks keep the relevant amounts abroad, they can earn around 4.3 percent Libor yield (the interest banks charge when they lend to each other in dollars), but since there is no such internal structure, the banks require the CBRT system. .

It is claimed that with this measure, the CBRT wants to encourage banks to transfer foreign currency from their foreign correspondents to CBRT accounts, and plans to contribute to gross reserves in this way. (REUTERS)