Registration entry to the Protected Currency Deposit

Record inflows were made in the week ending Friday, April 28, 2023 into exchange-protected deposit accounts.

The Banking Regulation and Supervision Agency (BDDK) announced weekly data from the banking sector. Accordingly, the money accumulated in KKM’s accounts last week was TL 2 trillion 117 billion 590 million (USD 108.6 billion).

The amount accumulated in KKM accounts in the previous week was TL 1 trillion 919 billion 792 million. Thus, in the last week, a total of 137 billion 798 million TL was transferred to currency protected accounts in banks.

In the past month, a total of 416 billion 887 million TL was deposited into KKM accounts. Since the beginning of the year, inflows of TL 747 billion 641 million have been made to KKM accounts.

1/5 OF THE TOTAL DEPOSIT

With the latest data, there has been a 16 week continuous increase in KKM accounts. The entry that took place last week was recorded as a weekly record.

While the ratio of accumulated deposits in KKM accounts to total deposits was 20.5 percent, the ratio of deposits in TL was 34.3 percent.

THE INTEREST LIMIT WAS RELEASED IN KKM

The interest ceiling, which was ‘policy interest plus 3 points’ on KKM, was removed at the end of January 2023 for foreign currency converted products, and at the end of March 2023 for TL and KKM conversion products maturing in 1 month was introduced for companies with currency deficit.

The fact that the upper interest limit on KKM accounts was removed with the March 31 decision was the most important factor that increased the attractiveness of KKM accounts. The expectation of an increase in exchange rates after the elections also influenced the trend towards this investment tool.

The government, wanting to ease the increasing pressure on TL due to the high current account deficit ahead of the elections, lifted the restrictions on KKM and encouraged KKM by introducing currency conversion to TL and TL minimum deposit rate regulations for banks.

The trend towards KKM products with high interest options has also increased recently.