Bankinter | Turkey Eliminates the Reserve Ratio for deposits with maturities greater than three months. Erdoğan could advance the elections generals.
(i) The Reserve Ratio disappears as of February 3 for deposits in Turkish lira with maturities of more than three months, currently it stands at 6%. Too reduces 8% from 9% for lower maturities.
(ii) President Tayyip Erdogan said in a speech on Sunday that could advance the elections generals to May 14, scheduled for June.
Opinion of the Bankinter analysis team:
The removal of the coefficient is a step to encourage savings deposits in local currency compared to the usual practice of its citizens who usually place them in dollars. The possibility of an electoral advance puts pressure on the party alliance in opposition to announce their candidate at a time when Erdogan’s popularity is on the rise.
