The gap between those who open a Currency Protected Deposit account and those who open a Currency Protected Deposit account will increase. The reasons are here…
Those who save dollars in the bank, beware! The famous economist broke the good news for those who have money in currency protection! Words that worry those who have dollars in their hands!
Alaattin Aktaş from Ekonomim.com “Reward for those who save in foreign currency, penalty for those with TL!” caption
The interest rate released in DTH conversion KKM will go up to 20-25 percent or even higher. There is no change in accounts opened with TL, the maximum interest rate is 12 percent.
The purpose is clear; no matter what, don’t solve KKM with DTH conversion, but definitely open a new KKM account with DTH conversion!
Those with KKM in TL will close their accounts and transfer to KKM first, if there will be no loss when they overrule.
At the inflation report briefing last week, Central Bank Governor Şahap Kavcıoğlu’s words about the interest ceiling in KKM were not clearly understood and caused differences in interpretations. However, there is no mistake in Kavcıoğlu’s words, the comments made are wrong. I am among those who misunderstand what Kavcıoğlu said.
Chairman Kavcıoğlu said that the banks freely determine the interest in the KKM accounts to which the Central Bank is a party. Accounts opened by exchanging foreign currency deposit accounts are the accounts to which the Central Bank is a party. So DTH conversion accounts…
Naturally, the abolition of the interest ceiling did not cover accounts opened in TL at KKM.
In the article I wrote on Friday, January 27th, I mentioned that the interest ceiling on accounts opened in TL at KKM has been removed; however, when I realized that this was not the case, I had to add a note to my article on the Internet.
GET ENTRY UP, STOP OUT!
The reason for removing the interest ceiling of the Central Bank in DTH conversion accounts is clear.
As a matter of fact, when we look at the last two weeks, although the direction is not very clear again, the decrease of 93 billion liras in the previous two weeks in the KKM caused panic.
It is clear that the reason for this decrease is mainly due to foreign currency conversion KKM. From this point of view, it has decided to remove the interest ceiling for DTH converting accounts in order to prevent exits and to open new accounts.
Extra items were added according to the share of the banks’ foreign exchange deposits in the total deposits they had, and this caused the banks to turn to different searches. Trying to overcome this situation, banks started to produce various campaigns for the owners of the accounts in order to reduce their foreign currency accounts. For example, if the condition of transferring a part of the foreign currency account to KKM is met, high interest rates are applied to the remaining amount.
A new opportunity has been opened for those who currently have an account, but more accounts are being opened. Do you want to convert all DTH to KKM and get high interest, perhaps 25 percent, up to 30 percent, or open a KKM account with a portion of DTH and negotiate interest for the remaining amount?
SAME ACCOUNT, DIFFERENT INTEREST!
In our country, the approach to saving is always the same:
The first truth is that whoever saves gets punished!
Secondly, woe to those who save in TL.
Since the last month of 2021, when the KKM application came into effect, the income used to open these accounts was the same regardless of the money used.
Whether the account is opened with DTH conversion or directly with TL; If the interest income during the maturity period is below the exchange rate increase at that time, the exchange rate is paid to the owner of the different account. However, if the exchange rate increase is equal to or lower than the interest, the owner of the account only receives the interest.
This general approach remains the same.
But now there is a difference in interest.
Until today, the most “policy interest + 3 points” interest was applied to KKM accounts, regardless of whether they were opened in foreign currency or TL.
This ceiling has now been vaguely removed.
This limitation will be applied to those who take their KKM account with TL and also depending on the policy interest. And this interest is now 12 percent because the policy rate is 9 percent.
However, the interest ceiling has been removed in KKM accounts opened in the form of conversion from gold accounts and DTH conversion accounts.
The thing happened: Someone eats, someone looks!
In other words, the interest on the KKM account will not be the same for the same amount, at the same maturity, at the same bank.
Why is that?
“You opened an account with TL, you are suspended; You opened an account by exchanging your currency, you deserved the award!”
While the account opened by KKM in TL continues to receive a maximum of 12% interest, it seems difficult to follow the interest received by accounts with DTH conversion.
According to the Central Bank’s analysis, the average interest rate of all banks on time deposits for the last 3 months reached 24.57 percent on 20 January. This ratio is a benchmark.
However, if the average is 24.57 percent, there are also banks that use higher rates than this.
Naturally, these banks will increase the interest even more in order to prevent the transparency of the DTH conversion KKM they hold and because they compete with other banks. Thus the borders disappeared; The interest may be 20 percent or 25 percent, on the contrary, it may be even higher.
Banks are not only interested in the settlement of KKM, naturally, they will try to collect DTH accounts for new KKM.
WHAT ABOUT THE ACCOUNTS OPENED IN TL?
In this case, what will be the fate of people who have opened a KKM account with TL?
Those who open KKM with TL have 2 options:
• He will turn a blind eye to his fate by saying ok to 12 percent interest.
• Or he will open a DTH account first by breaking the maturity of his accounts, and then open a “KKM with DTH conversion” account and enjoy himself.
Considering the second option, there will be a search for foreign currency, but as this currency evolves into KKM, it will be re-systemized because it will change what is in the account. So it won’t have any effect.
In this case, the difference resulting from the conversion of accounts opened in TL to DTH will be the responsibility of the Central Bank, not the Treasury.
KURTULUŞ MEANS THAT DTH WILL COME FROM ALTERNATIVES
There are 2 reasons why the Central Bank has to remove the ceiling interest rate, which has been recorded as +3 points for more than a year, when it comes to accounts with DTH conversions.
DTH conversion account holders were already foreign currency savers, and this was the reason they entered KKM. It was very easy for this segment to turn to foreign currency. Reports also show that the decrease of 93 billion in two weeks was mostly due to DTH conversion accounts.
In order to prevent this reversal, the way was paved for paying more than necessary interest on foreign currency. The foreign exchange standing in KKM did not bring more than 12 percent additional income. However, banks started to apply high interest rates on foreign currency.
Naturally, the owner of DTH whose account is kept at KKM will also say OK to an annual interest rate of 12 percent, for example, 3 percent for 3 months, or will turn to banks that give high interest on foreign currency in order to earn more.
Therefore, this situation was tried to be prevented.
Of course, this is not the only purpose.
Currently, the foreign currency accounts in the bank are called “come, come”!
Let’s say you have a foreign currency account in a bank. If the amount of your account is not very high and you cannot receive high interest on this foreign currency, it is as if you have accepted to make a profit in proportion to the exchange rate increase. And as you see the target of keeping the exchange rate constant, which is one of the promises made until the elections, you think that you incur losses as a result of the foreign exchange remaining the same.
But fear not! A new opportunity door is with you. From the bank or other bank where you have an account, he says, “Let’s convert your currency to KKM, you have the right to receive your foreign currency exactly at the end of the maturity period, look, the interest is not at 112 percent anymore, if the exchange rate increases slightly during the maturity period, I will give you an interest of around 25 percent annually.”
Who wouldn’t open a KKM account under these conditions?
After this application, it is expected that there will be an increase in the KKM balance with the removal of the interest ceiling in DTH conversion accounts.
Although all the rates are not known exactly, approximately 50 percent of the total KKM account consisted of accounts with DTH conversion, and the other half consisted of accounts opened with TL. With the regulation, a noticeable increase is expected in the ratio of those who open accounts with DTH conversion.