Turkish companies, including exporters and tourism firms that bring in foreign currency from abroad, will be offered foreign exchange conversion support by the country's central bank, according to a statement by the monetary authority on Thursday.Firms will be provided support corresponding to 2% of the foreign exchange they repatriate from abroad and convert into Turkish lira after selling it to the Central Bank of the Republic of Türkiye (CBRT).The mechanism will apply to firms that commit not to buy foreign currency for a period determined by the bank and deposit the remaining amount to conversion accounts as part of a scheme to protect lira deposits against foreign exchange depreciation, according to the authority.The move comes as exporters have complained that the lira is "overvalued," which threatens their competitiveness abroad.Exporters must sell 40% of their earnings abroad to the central bank. Under the new mechanism, they will now benefit from a preferential exchange rate by depositing the remaining 60% of their foreign proceeds accounts as part of the scheme in which the state protects lira deposits from depreciation.Analysts have voiced concern that the practice could create a different foreign exchange conversion rate to the trading rate in the free market.As part of its so-called liraization strategy, the central bank has taken several measures to revive interest in the currency after steep depreciation, and high and volatile inflation prompted Turks to seek safer places for their savings.These steps and the Turkish lira's stability in the last several months helped cut the share of foreign currencies to around 46% of total bank deposits compared to some 65% a year ago.The latest steps are expected to ensure a stable course in foreign exchange rates. (ICE ISTANBUL)

Fonte notizia: DAILY SABAH