Turkish Banks ATMs/Bloomberg
Takasbank said that since the beginning of the year, the size of money-market funds more than doubled to TRL 28.5 billion ($5.2 billion).
Thursday 14, March 2019
(Bloomberg) --Turkish authorities imposed a limit on how much cash money-market funds can hold after savers flocked to the higher-yielding instruments to protect themselves against rampant inflation, draining bank deposits.
Money-market funds need to invest at least half of their holdings in deposit accounts at the nation’s commercial lenders, compared with a maximum 10 per cent previously.
The rush to money markets comes as the Government leans on lenders to lower interest charges, driving deposit rates to levels that barely compensate savers for inflation running at 20 per cent.
The move forced savers out of traditional bank deposits and fuelled a rush for dollars. Money-market funds yield around 21 per cent compared with an average 19 per cent on one-month deposits.