Electronic transactions soared during pandemic

THE number of electronic transactions carried out in the TRNC more than doubled between 2019 to 2021, according to a Central Bank report.

Data contained within the Central Bank’s latest annual report showed that a total of 431,314 electronic transactions took place in 2021, compared to 363,169 in 2020 and just 203,433 in 2019.

Of the electronic transactions recorded in 2021, 197,448 were “branch-based”, while 222,619 were completed over the internet and 11,247 were performed via “other channels”.

The report said that the total number of electronic transactions recorded in North Cyprus had increased by around 19 per cent in 2021 compared to the previous year.

The Central Bank said that the domestic Electronic Payment System (EÖS) officially came into effect on November 19, 2015, providing “real-time reconciliation in an electronic environment for direct, fast and secure domestic money transfers without any amount limit in four different currencies: the Turkish lira, euro, American dollar and British Pound”.

The Central Bank said that the EÖS allows participating banks to “integrate their banking systems” and offer their customers the opportunity to transfer money through channels such as cash machines, internet banking and mobile banking.

“Thanks to this system . . . customers are provided with the opportunity to make money transfers practically and quickly without having to go to the bank branches,” the report states.

“In addition to the convenience it provides to customers, the system also helps to prevent the black economy and saves on bank costs.”

BILLIONS TRANSFERRED

The report also showed a steady rise in the amount of money flowing into and out of the TRNC in the form of bank transfers since the introduction of the EÖS, as well as the 10,000 euro or equivalent limit on bringing in cash in person.

Money transferred into the country via banks, including Turkish lira and foreign currency, rose from the equivalent of 2.77 billion TL in 2016 to the equivalent of 12.89 billion TL last year.

The amount of money going in the opposite direction via banks increased from the equivalent of 2.25 billion TL in 2016 to the equivalent of 13 billion TL in 2021.

The report stated that there was a 47.43 per cent increase in incoming bank transfers in 2021 compared to the previous year.

The amount of Turkish lira transferred into TRNC bank accounts increased by 2.2 billion TL to 7.1 billion TL in 2021 compared to 2020, a rise of 44.48 per cent.

For the same period incoming bank transfers in euros were up by 44.92 per cent, those in sterling rose by 16.27 per cent, while there was a 9.17 per cent fall in inward transfers made in US dollars.

For bank transfers of money from the TRNC to other countries, the amount of Turkish lira sent abroad rose by 1.9 billion TL in 2021 to 7.6 billion TL, a rise of 34.11 per cent on the previous year and accounting for 58 per cent of all outgoing transfers.

The amount of dollars transferred out of North Cyprus in 2021 rose by 29.68 per cent, followed by an increase of 10.55 per cent for sterling transfers abroad.

The amount of euros sent to overseas bank accounts fell by 36.49 per cent last year.