Turkish central bank to support firms that convert forex from abroad

Turkey’s central bank said on Thursday it will provide 2 per cent foreign exchange conversion support to companies that bring forex into the country from abroad, sell it to the central bank and pledge not to buy forex for a period determined by the bank.

After selling 40 per cent of the forex they bring into the country to the central bank under pre-existing rules, companies will be allowed to deposit the remaining amount into conversion accounts under a scheme that protects lira deposits against forex depreciation, the bank said.

It said companies who pledge not to buy more forex than they have sold to the central bank for a period determined by the bank will be given support equal to 2 per cent of the amount they converted and deposit in such accounts.

The move aims to support the bank’s liraization targets in commercial activities, the bank said, adding that lenders will determine whether the forex sold to the central bank and deposited in lira protected accounts is obtained from abroad.