burden on a budget of Turkish government- The subsidized scheme that seeks to encourage the conversion of foreign currencies by protecting Turkish lira deposits from depreciation continues to do so decrease The Minister of Treasury and Finance, Noureddine Al-Nabati, said that gradually on Sunday.
Al-Nabati’s remarks came after the volume of Deposits under the scheme amounted to about 2.35 trillion Turkish liras (nearly $120 billion), a new recordafter rising At 144 billion Turkish liras in The week ending May 12th, marking highest Weekly increase ever.
Scheme unveiled in Late 2021, known by its acronym KKM, seeks to keep dollarization at bay by encouraging people to preserve their savings in Lira through guarantees of compensation for losses from decline against hard currencies.
“the cost to budget of foreign exchange rate- Protected Deposit application that reached a total of 2.3 trillion TL continued in decrease Gradually, it achieved 95.3 billion Turkish liras ($4.81 billion). in totalNabati Books on Twitter.
the budget Payments in KKM amounted to about 91.6 billion TL in 2022.
Nabati said government Don’t expect to create a serious profile cost in The next period, citing the regulation that removed chart maximum interest rate Limit for local individual investors.
The regulation still states that rate Deposit in lira was offered as part of It can’t be planned below the current policy rate of central bank of Republic of Türkiye (CBRT), currently It stands at 8.5%.
Households consider foreign exchange a tool shield themselves from fluctuations in Lira and rising inflation, which eased over the last six months and fell to 43.68% annually in April.
lira declined 44% in 2021 and lost about 29% against the United States dollar in 2022. The currency is down about 1% last After a week of holding this mostly stable year.
Nabati said the KKM sought to rein in “the high volatility and the atmosphere of panic that had arisen in foreign exchange markets”.
The atmosphere of panic was eliminated, and share of Deposit accounts in foreign currencies in total Deposits were significantly increased reduced and contribute to stability in The foreign exchange rates were madeHe don.
Otherwise, the minister He said volatility and increase in ups and downs in exchange rate may have him triggered Significant impact on Turkish Foreign Ministry debt Stocks are heavily disabled development of primary markets.
Moreover, this would have coincided with a period of sharp increases in Goods’ prices triggered Because of the war between Russia and Ukraine is increasingly tightening of global financial Nabati said.
Under these conditions, the sectors can be stressed faced Significant costs, including a problem of Imports and borrowing the most expensive in higher the prices.