Turkey raised the tax on foreign currency deposits

September 1, 2018 10:20 pmComments Off on Turkey raised the tax on foreign currency depositsViews: 93

Turkey lira depositsTurkey raised the tax on foreign currency deposits and removed taxes on those in Turkish lira in its efforts to support its troubled currency.

According to today’s decision, the tax on foreign currency deposits with a term of up to six months increases from 18% to 20%. At the same time, the tax on deposits in Turkish lira with a term over one year is reduced from 10% to 0%.

The TRY rate rose by 2.1% after the decision and reached 6.51 TRY per USD.

The Turkish currency lost about 40% of its value this year because of economic policy concerns related with the governance of the President Recep Tayyip Erdogan and because of the ongoing trade and diplomatic dispute with the United States.

On Thursday, the US dollar appreciated by 3.7% against the Turkish currency for a day, exchanging 6.7107 TRY.

The central bank has announced a series of steps in recent weeks, after reintroducing limits on overnight interbank market transactions on Wednesday. This tightens liquidity, although investors expect to see interest rates increase in order to restore confidence in the markets.

Comments are closed