Waiting for the top to sell dollars
Data from the Central Bank (CBRT) showed that the sharp downward trend of $6.2 billion in foreign exchange deposits in the last week before the elections did not continue after the elections. According to the CBRT data, in the week ending June 2 there was a decrease of 1.5 billion dollars in foreign currency deposits of national residents, adjusted for the parity effect. However, a limited part of this decrease, $389 million, was observed in dollar accounts.
$602 million of the decrease in foreign currency deposits came from gold accounts. The government went to the elections with the objective of keeping the dollar below 20 TL. After May 28, in the week ending June 2, the dollar rose about 4.9 percent and settled at the edge of TL21.
COMMERCIAL SHEARS ARE GLOWING
Foreign currency deposits of domestic residents fell from $176 billion to $175.5 billion last week. Of the depreciation of $1,050 million, $740 million came from individuals and $310 million from companies. In the week in question, the accounts of legal persons decreased to 70,000 million dollars and the accounts of natural persons to 105,400 million dollars.
Meanwhile, the banks’ trade spread, which was previously 9-10 percent, is seen to have eased to 4-5 percent this week. As this spread narrows, savers who see the exchange rate as sufficient are expected to see the gain as sufficient and return to TL.
Premium brake to currency protection
Foreign Exchange Protected Deposits (KKM) posted the slowest rise in 2 months in TL terms in the week the advance premium payment request was cancelled. According to data from the Banking Supervision and Regulation Agency (BDDK), KKM’s volume increased by TL 35 billion to TL 2.5 trillion in the week of June 2. In dollar terms, Protected Currency Deposits decreased by $3.5 billion to $122.1 billion in the week ending June 2.
The end of the practice of the prepaid premium played an important role in slowing down the growth rate of Protected Deposits in Currency. In a letter sent to banks last week, the Central Bank (CBRT) demanded an end to the “prepaid premium on KKM” practice.