Currency protection will be heavy

The Currency Protected TL Deposit (KKM) system, which was put in place to curb currency exchange, has been unable to reduce the exchange rate so far and has started to impose huge costs on the country’s budget, which consists of people’s taxes. When we take the averages for March and June, the rise in the dollar has reached 25.4 percent. With the effect of this rapid increase, those who opened an account in March made a significant profit. According to the information obtained from sources close to the subject; At the end of March, the 3-month total return from investors, who tied their savings to KKM and matured this week, hit a record 34 percent. Therefore, this record raised the cost of KKM to very serious levels in June.

ALL OF 2022 IN ONE MONTH

It is not known how many of the KKM accounts are opened with TL, how many are currency conversion accounts and their maturity distribution. KKM alone has a size of 2.7 trillion lira as a base. Therefore, economists make their calculations according to certain scenarios. According to these calculations, the cargo that arises only in June can reach 150 billion lira to 200 billion lira. Although the Central Bank (CBRT) tried to hide it, the total cost of KKM to the public was approximately 181.5 billion lira in 2022. This amount, which is spread over the whole year, will only appear as KKM cost in June.

On the other hand, according to the bill submitted to the Parliament, KKM is fully handed over to the Central Bank, along with its cost and responsibility. Experts estimate that 20 percent of the shares of KKM, which has reached $134 billion, is derived from TL, and therefore the amount of capital to be transferred to CBRT under the scope of support is 27 billion dollars.

1.5 day increase 19.8 billion lira

According to weekly data from the Banking Supervision and Regulation Agency (BDDK), Protected Currency Deposits increased by 19.785 billion lira to 2 trillion 739 billion 394 million lira in the 1.5 working days of the long holiday. Thus, the size of the KKM reached its new all-time high. KKM, which is assessed as a foreign currency-indexed product with foreign currency deposits at banks, in total deposits increased to 67 percent as of June 27.