Turkish central bank terminates foreign-exchange-protected deposits

The Central Bank of the Republic of Türkiye (CBRT) will terminate the opening and renewal of foreign-exchange-protected deposits (KKM) as of Aug. 23, it said Saturday.

"Accounts opened prior to this date will remain valid until their maturity, following which the relevant communiqués will be repealed," according to the bank.

With the termination of KKM accounts, the total target for KKM accounts' transition to the Turkish lira and renewals has been abolished, it added.

"Accordingly, the CBRT has revised its regulations on reserve requirement remuneration and commission practices," it noted.

In December 2021, Türkiye announced KKM to protect the Turkish lira's value against foreign currency fluctuations.