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Foreigners Also ‘protected Currency Unit’

Currency-protected TL deposit account, which was established to prevent the manipulation of the dollar in Turkey, was opened to foreigners as of yesterday. Foreigners will be able to convert their assets such as dollars, euros, sterling or gold into TL and use them in the Yuvam account.

The scope of the YUVAM account, which was launched to encourage citizens living abroad to use their savings in Turkey , was expanded. With the regulation published in the Official Gazette, the scope of the YUVAM account of the Central Bank of the Republic of Turkey was expanded. YUVAM, the version of currency-protected accounts for foreign citizens, has also been opened to foreign individuals and companies. Non-Turkish citizens and companies residing abroad will also be able to convert their assets such as dollars , euros, sterling or gold into TL and use them in the Yuvam account.

EXTENDED SCOPE


The Foreigners Residents’ Deposit Participation System (YUVAM), which was introduced for the citizens of the Republic of Turkey living abroad to benefit from the currency-protected deposit system, has been amended, paving the way for foreign companies and individuals to be included in the system. Persons residing abroad are defined as follows in the relevant communiqué: “Real persons who are citizens of the Republic of Turkey, who have a residence or work permit or the right to reside abroad, or whose foreign address is registered in the address registration system as a place of residence, is the Turkish Citizenship Law No. 5901 of 29 May 2009. Foreign national real and legal persons who meet the conditions of opening an account in banks and those who have been given a Blue Card in accordance with Article 28 of the .

71.7 billion liras accumulated in participation banks


Citizens, who evaluated their savings through participation banks, increased 3 thousand 982 liras with a 17 percent contribution at the end of the 3-month period, while the earnings of the participants reached 27 thousand 696 liras with the increase in the dollar. In the participation banking sector, the size of the Currency Protected TL Participation Account reached 71.7 billion TL in the last three months.

Renewal facility introduced


With the change made in the currency protected deposit system, foreign currency and gold accounts in banks as of 31 December 2021 will be able to be converted into Turkish Lira. In addition, TL deposit and participation accounts included in the system were allowed to be renewed. While the deadline for converting foreign currency deposit accounts and participation fund accounts of domestic residents in dollars, euros and sterling to TL and including them in the currency protected deposit (KKM) system, the limit will continue as of the end of 2021 for corporates. The same regulation will also apply to the communiqué on supporting the conversion of the Central Bank’s gold accounts to TL deposit and participation accounts.

Citizens prefer to renew


Central Bank President Prof. Dr. Şahap Kavcıoğlu, regarding the currency-protected deposit system, said, “The system is highly favored, citizens prefer to renew it.” Kavcıoğlu met with World Turkish Business Council President Nail Olpak and noted that regulations were made that investors would never lose. Kavcıoğlu answered the question about the possibility of money outflow from the Deposit and Participation System (YUVAM) for Citizens residing abroad as “There will never be a problem in this regard in Turkey”.

Erdem Artan

Hello, I'm Erdem, I write content for Expat Guide Turkey every day. Don't forget to check it out!

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