Turkish lira stronger in daily FX-protected account rates

Turkish lira stronger in daily FX-protected account rates

The Turkish lira grew stronger Thursday in newly announced parity rates against foreign currencies, rates released every morning by the Turkish Central Bank for FX-protected lira deposit accounts.

The US dollar/Turkish lira exchange rate was 11.64 for buying and 11.66 for selling, down from 12.34 and 12.37, respectively, on Wednesday.

According to the bank, euro rates were 13.18 for buying and 13.21 for selling, falling from 13.91 and 13.94, Anadolu Agency reported.

The bank announced the first set of rates on Wednesday.

On Monday, President Recep Tayyip Erdogan announced the new deposit account system along with several other financial measures to protect the Turkish lira's value from foreign currency fluctuations.

After his announcement, the value of the Turkish lira against foreign currencies shot up around 40%.

Under the new system, comparing the foreign exchange rates at the beginning and at end of the maturity of resident real persons' accounts, the Central Bank will pay the difference, whichever is higher, to depositors.

Under the new system, regardless of the exchange rates, depositors will receive the principal and the interest/profit share.