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Turkiye's central bank posts $25bn loss for 2023

April 15, 2024 at 8:32 am

The entrance sign of building housing the Turkish Central Bank [Diego Cupolo/NurPhoto via Getty Images]

Turkey’s central bank posted a 2023 loss of 818.2 billion lira ($25.25 billion), according to its balance sheet published in the Official Gazette yesterday, Reuters reported.
The losses stem from the KKM foreign exchange-protected deposit scheme which the government has been working for months to exit. Launched in 2021 to stem a historic currency crash, losses stemming from KKM prompted the central bank to pass on distributing profit to the Treasury in 2023.
The scheme helped reverse a trend of Turks flocking to hard currency and gold to protect savings after years of lira depreciation.
The central bank is now seeking to boost the share of lira deposits in the banking system. It started in August to urge conversion from KKM to standard lira accounts.
An independent audit report published last year showed the central bank posted profit of 72 billion lira in 2022 and 57.5 billion lira in 2021.
The central bank will convene its general assembly on 30 April in Ankara to discuss the 2023 results.

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