Page 36 - TURKRptFeb20

8.1.2 Loans
8.1.3 Deposits
Turks are still getting angry when they see on media reports that inflation fell to single digits and the economy is growing. Dollarization continues apace. January saw new records in FX deposits. A sign that the latest loan stimuli cycle is again ending in FX deposits?
The central bank decided to apply a commission on required FX reserves, starting from January 10 . The bank will charge an annual 0.025% on required reserves for dollar-denominated deposits and participation funds. It will charge an annual 0.0025% on required reserves for non-dollar-denominated deposits and participation funds that are held in euros and dollars.
Average interest rates on Turkish lira (TRY) deposits at local banks fell to 9.60% as of January 17, the lowest level recorded since January 2017, according to data from the central bank.
The figure stood at 23% in June 2019 but it has steadily fallen since then.
36 TURKEY Country Report OUTLOOK 2020 www.intellinews.com