Implementation of Measures to Strengthen Monetary Policy Strategy
The Central Bank of the Republic of Turkey (CBRT) has recently announced new measures to support its tight monetary policy stance in an effort to maintain the disinflation path and ensure the harmonious course of credit growth.
One of the key changes introduced by the Central Bank is the reduction in the monthly growth limit for foreign currency loans from 2 percent to 1.5 percent, while keeping the monthly growth limit for Turkish lira (TL) loans constant at 2 percent. The scope of exemption for investment loans has also been expanded, with investment loans obtained through international development finance institutions exempt from TL and foreign currency loan growth limits.
In a further move to encourage the transition to Turkish lira deposits, the Central Bank has issued a regulation regarding YUVAM accounts. The regulation, published in the Official Gazette, reduces the lower limit of interest rates for YUVAM accounts to 70 percent of the policy rate, similar to Currency Protected Deposit (CCD) accounts. Additionally, additional return rates according to maturity have been lowered by 2 points, with rates set at 1 percent, 2 percent, 3 percent, and 4 percent for accounts with 3, 6, 12, and 24 months maturity, respectively.
Under the new regulation, YUVAM accounts can only be opened through transfers from abroad or with a document proving the origin of the funds. The Central Bank will no longer pay any commission to banks for YUVAM accounts.
These changes are set to take effect starting Monday, July 22nd. The Central Bank’s continued efforts aim to strengthen its monetary policy stance and promote stability in the financial market.
