The Central Bank of the Turkish Republic of Northern Cyprus has raised interest rates

The Board of Directors of the Central Bank of the Turkish Republic of Northern Cyprus has reviewed interest rates on deposits, reserve accounts, as well as rediscount and advance operations.

The new rates will take effect from December 1. According to the regulator's statement, the interest rate applied to deposit accounts in Turkish lira, subject to interest in the Central Bank, regardless of their maturity, has increased from 26% to 36%.

The interest rate applied to deposit accounts in US dollars has increased from 1.50% to 2%, in euros from 1.00% to 1.25%, and in British pounds sterling from 1.25% to 2% annually.

The interest rate applied to mandatory reserves in Turkish lira at the Central Bank has increased from 6% to 15% per year, in US dollars from 0.75% to 1%, in euros from 0.50% to 0.75%, and the interest rate on legal equivalents in British pounds has increased from 0.65% to 1% annually.

The discount rate applied in rediscount operations, which the Central Bank will carry out in exchange for commercial bills issued in Turkish lira, will be increased from 40% to 50% annually.

The discount rate applied in rediscount operations for bills issued in Turkish lira in exchange for bills from the industrial, export, tourism, educational, and agricultural sectors has increased from 32.75% to 42.75% per year. The discount rate for bills for small-scale trade has increased from 30.75% to 40.75%, and the interest rate applied in foreign currency advance operations has increased from 32% to 42%.

The discount rates applied in rediscount transactions for bills from the commercial, industrial, export, tourism, and educational sectors issued in foreign currency (US dollars, euros, British pounds), as well as the interest rates applied in advance transactions against foreign currency, have increased from 4 to 5%.