The center has now taken over the credit card.

The Central Bank (CBRT), which has spent $17.7 billion of foreign exchange reserves since April, has now seized consumer credit cards. According to information obtained from banks, the CBRT has arranged for cash withdrawals and jewelry spending with credit cards above a certain limit. Consequently, banks are required to buy government bonds in the amount of 30 percent of gold and jewelry purchases made with credit cards from customers with a credit card limit of more than 50,000 lira. In addition, if the monthly increase exceeds 3 percent separately, regardless of loans for SMEs, export, investment, agriculture, consumption, bonds will be established for that amount. While the CBRT’s dwindling reserves make it difficult for the public to control currency markets, it aims to prevent demand for currency and gold via cards by discouraging credit card cash withdrawals.

Cardholders have recently begun to view cash withdrawals as a cheaper alternative to borrowing in terms of investment opportunities.

LOWER COST COMPARED TO LOAN

Since the cost of credit card cash advances or installment cash advances provided the lowest loan in TL at 1.36 percent monthly interest, it became the loan channel with the highest individual demand before the elections. Banks stated that they began to reduce the disbursement of loans within the scope of this facility, which allows borrowing at a very low interest rate of almost 20 percent, before the CBRT took this step. While some banks have lowered the maximum amount of cash advances that can be used prior to this article, many banks have lowered the longest maturity from 12 months to 6 months.

Chief Economist of Dynamic Investments Enver Erkan

Demand Cap Regulations Continue

Pointing to the double exchange rate system that emerged in the market with the widening of the spread between the market rate and the CBRT rate before the election, Dynamic Investment Chief Economist Enver Erkan said: “Currently, while that the interbank rate is applied for currencies in the bank, a very different exchange rate comes into play in market transactions, that is, the real sector and individuals, it has become that different market exchange rate , which is the main thing for us. It is understood that the struggle of the Central Bank in the field of demand for foreign currency and gold will again be through regulations (regulations).