Türkiye’s central bank has rescinded its decision made this week that mandated banks to hold securities for cash withdrawals made using credit cards and expenses related to jewelry purchases, reports claimed Friday.
The regulation on Monday came after Sunday's presidential and parliamentary elections, as the Central Bank of the Republic of Türkiye (CBRT) sent a letter to banks expanding security holding requirements to cover more loans.
Banks no longer need to hold government bonds for customers’ gold purchases or cash advances taken out using credit cards, according to a letter sent to banks and reported by Reuters and Bloomberg on Friday.
The central bank required banks to hold 30% of securities for cash withdrawals on credit cards and jewelry expenses. It was for customers whose card limits were above TL 50,000 (about $2,500).
Cash withdrawals on credit cards and deferred cash payments saw the highest individual demand ahead of the elections because they offer the lowest borrowing costs.
Demand for foreign exchange and gold also rose to record-high levels just before elections as locals saw them as a tool to shield themselves against possible depreciation in lira currency and soaring inflation.
