As of November 2021 Turkey policy changed its interest rate policy. After this change, while almost all products in Turkey were going up after a hike, the economic crisis in the country created a panic atmosphere in the government.
After the unstoppable rise of the dollar, the government launched the Currency Protected Deposit project and dropped the dollar by 8 liras overnight. After this project, which had a shocking effect in the country, came to power again in resentment, and experts announced that this project would not be long-lasting.
During the last period, while the dollar was seeing 18.50s, a plan of the government to reduce the dollar to 9 liras overnight was leaked to the press.
BANKS’ FOREIGN EXCHANGE WILL BE BROUGHT TO TURKEY!
Paraanalysis economy According to the author Turhan Bozkurt, Centre Bank (CBRT) and Banking Regulation and Supervision Agency (BDDK) are cooking boza on the necks of banks. Phones are not silent. As one ends, another begins.
When we said “Don’t give credit to”, “Increase the speed of transition to currency-protected deposits” or “Buy foreign currency”, it was time for foreign currencies held abroad.
The Central Bank told the banks, “We know that you hold high foreign currency balances in correspondent banks abroad. Bring those foreign currencies to Turkey” he instructed.
IT SIGNED THE MONTH OF OCTOBER
When a bank’s treasury manager quoted these words two weeks ago, “Did they get that far?” I couldn’t help myself from saying it. But my source was so confident: “They even gave me until October. They were going to take out the report card of who brought how much foreign currency.” said.
BANKERS ARE STUNNING: HOW WILL THE EXCHANGE BE BROUGHT TO TURKEY?
Another banker I spoke to to confirm the claim said, “Yes, it’s true. Everyone is shocked.” used the phrases.
The same banker provides customers abroad quickly and at low cost. service He stressed that foreign currency is kept in correspondent banks to present it, and added: “Resetting the foreign currency balance and bringing it to Turkey is not enough!”
Şahap Kavcıoğlu, as of March 20, 2021, when he replaced Naci Ağbal as the Chairman of the Central Bank. general If he had met with his managers, he would have brought foreign currencies to the table.
Although bank general managers try hard not to laugh every time, none of them say, “This is actually not possible.” didn’t say, didn’t say.
The general managers of some banks consult Ankara every step of the way in order not to get zılgıt. Branch managers, even bank general managers who received verbal approval from Ankara for the security guard there is.
TRANSACTIONS ABROAD MAY BE DISCONTINUED
Since it is costly in terms of legislation and time for banks to open branches abroad, a cooperation agreement is signed with a bank in those countries instead. In return for a certain commission, it is less costly to carry out all transactions from money transfer to letter of credit through a correspondent bank.
Thus, a bank operating in Turkey can provide services to its customers, especially those who are engaged in foreign trade or who have investments in different countries, even without a branch abroad.
For the mechanism in question to work, there is no other choice but to hold foreign currency at the correspondent bank. It should not be viewed only in terms of dollars, euros or sterling. It must also be purchased in the currency of the country where the correspondent bank is located.
Although the Central Bank has not officially announced it, it estimates that around 20-25 billion dollars of foreign currency is kept in correspondent banks. At least 20 percent of this money is requested to be brought to Turkey in October.