Deposit rates surge, markets navigate interest rate measures
Turkish Lira faces fluctuations against major currencies as deposit rates surge and markets navigate through varying interest rate measures
Driven by fluctuating exchange rates, particularly against the Turkish lira, individuals are eager to find the closing rate for the U.S. dollar, euro, and British pound sterling at the end of each business week.
As of March 15, 2024, the exchange rates stand as follows:
- Dollar: Closing at TL 32.2112 TL, the dollar/TL rate currently sits at TL 32.2049 (buying) and TL 32.2176 (selling).
- Euro: With a previous close of TL 35.0737 TL, the euro now trades at TL 35.0495 (buying) and TL 35.0981 (selling).
- Sterling: Priced at TL 41.26 TL (buying) and TL 41.47 (selling).
At Istanbul’s Grand Bazaar, the dollar’s buying rate is TL 32.20 TL and its selling rate is TL 32.21, while the euro is bought at TL 35.09 TL and sold at TL 35.11.
In the cryptocurrency market, Bitcoin, starting the day at $67,737, now trades at $68,272, whereas Ethereum, beginning at $3,690, now stands at $3,737.
Markets continue to fluctuate
Following recent measures, deposit interest rates have surged to 53.63% and consumer loan rates to 63.36%. Economists note the containment of market-disruptive actions like “take credit, buy currency,” which has slightly cooled down the fervor in exchange offices.
Looking back to January’s first week, fluctuations in foreign exchange deposits ranged between $174 billion and $177 billion. However, in the week ending March 8, they surpassed $180 billion.
Additionally, the Central Bank’s reserves decreased by $10.50 billion, compared to their peak of $141 billion at the end of December. These figures confirm the trend of some savers turning to foreign currency due to high inflation, election uncertainties, and the closure of TL-indexed deposit accounts.
Stricter credit card limits
Amidst these developments in market pricing, measures such as a 25% cash advance limit and a three-installment restriction for credit card cash advances for individuals, alongside stricter credit expansion limits and increased reserve requirements for banks, have been implemented.
As a result, deposit interest rates have reached their highest levels in recent years at 53.63% for one to three months, while consumer loan rates have peaked at 63.36% in 2024.
Meanwhile, the central bank’s interest rate decision for March will be announced after the Monetary Policy Committee meeting on March 21.
Source: Newsroom
