there again. However, there were times when the same rate fell below 30 percent due to of economic confidence. So as usual, when the people have confidence in the course of the economy, they avoid carrying foreign currency in their portfolio. As confidence in economic activity declines, the tendency to have Turkish lira in their portfolio weakens. As the government makes people wait, the share of foreign currency deposits in total deposits increases. Foreigners also don’t do anything. Everyone waits.
It is getting harder for CBRT
This wait-and-see attitude makes it harder for both the CBRT and bank administrations. In the past, as the ratio of foreign currency deposits increased in the Bank’s balance sheet, the Bank management would give more foreign currency loans to Turks.
Then, when the Turkish lira depreciated badly against the dollar, it was forbidden to issue loans in foreign currency to individual customers and companies that have no income in foreign currency. The aim was to prevent the Bank from transferring foreign currency risk to those who did not have the ability to manage such risk.