Announcement on Supporting the Conversion to Turkish Lira Deposit and Participation Accounts

“Communiqué Amending the Communiqué on the Support of Conversion to Turkish Lira Deposits and Participation Accounts (Number: 2021/14) (Number 2023/25) ” (the “Communiqué”) has been published in the Official Gazette dated 18 September 2023 and numbered 32313 by the Central Bank of the Republic of Turkey (the “CBRT”).

As of the dates specified in the relevant Communiqué, it is stated that individuals and legal entities will be able to convert their existing foreign currency deposit accounts and participation fund accounts balances in banks into Turkish Lira upon the request of the account holders.

Previously, CBRT had undertaken regulatory changes aimed at increasing the share of Turkish Lira in the banking sector and transforming Turkish Lira into a savings instrument. These changes included the removal of foreign exchange protected deposits, revisions in the transition to Turkish Lira and renewal processes, and adjustments in Turkish Lira share calculations.

Also within the scope of this Communiqué, CBRT steadfastly continue to pursue pursue the aforementioned Turkish Lira conversion policies and takes incentive measures in line with its objectives.

The Communiqué has entered the force on the date of its publication, effective as of 18 September 2023, and you may find the detailed provisions in the Official Gazette.