Turkish corporates can open lira deposit protection scheme accounts without converting FX

Turkish companies facing forex payments will be able to open lira accounts protecting against depreciation without needing to convert foreign exchange, and a central bank source said on Thursday there would be no limit on the interest rate offered.

An announcement in the country’s Official Gazette said the accounts will have a minimum maturity of one month compared to a previous minimum of three months under the scheme.

Ankara launched the scheme protecting lira deposits from depreciation in late 2021 to ease a historic currency crash in which Turks were flocking to dollars.

The lira lost 44 per cent versus the dollar that year, and nearly 30 per cent in 2022 but has stabilised this year ahead of the May elections.