Turkish central bank to set interest rates on dollar-linked deposits

Turkey’s central bank will set maximum interest rates to be charged by banks on dollar-linked savings accounts.

The bank issued the new regulation in a decision published in the Official Gazette on Tuesday.

Turkey introduced the new deposit account scheme in late December to help bolster the value of the lira after the currency hit successive record lows against the dollar. The lira lost 44% of its value last year.

The central bank also issued a circular in the Official Gazette announcing that it will issue rules allowing Turks resident abroad to convert their foreign currency accounts into special lira accounts with returns linked to the value of foreign currency.

Ahval