Turkey took the first step away from a tool introduced to arrest currency depreciation, as the central bank set a target for banks to reduce their share of such deposits. Lenders whose clients do not convert a certain ratio of their FX-linked deposits to regular lira deposit accounts will have to purchase additional government bonds, according to a decree published in the official gazette on Sunday (Aug 20). Deposits in these FX-linked accounts are guaranteed a return equal to the rate of the lira's weakening, or a pre-set regular interest in case the currency remains steady.

http://klse.i3investor.com/web/blog/detail/kianweiaritcles/2023-08-20-story-h-242016932-Turkey_sets_target_for_lenders_to_reduce_FX_linked_deposits

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