Following Türkiye’s presidential race, the Turkish lira is expected to lose value.
North Cyprus is experiencing a liquidity crisis of the Turkish Lira at banks following the deposits from banks that have either been converted into foreign currency or TL loans being taken, converted into foreign currency, and hoarding cash money at home.
According to Yenidüzen News, some local banks have brought limits to Turkish Lira loans.
The Cyprus Turkish Teachers’ Solidarity Cooperative (ÖYAK) announced that it has limited TL-based loans.
According to a statement by the ÖYAK management, 80 per cent of deposits at banks have been deposited in foreign currency, and the loan demands were mostly in Turkish Lira. It has been reported that like other local banks, ÖYAK is also experiencing a liquidity crisis in TL.
Reminding that the Cooperative gives loans in line with the deposits put down by its members, it was announced that the maximum limit of TL credit is 100 thousand TL.
Deputy Chairman of North Cyprus Banks Association Cengiz Erçağ said that he had not received news of other banks experiencing cash TL shortages, and noted that the North Cyprus Central Bank could give a guarantee and support in the case of TL shortages.
Economist Mahmut Sezinler, on the other hand, said that, unlike the North Cyprus Banks Association, he confirmed that there was a shortage of TL at various local commercial banks and that the TL loan requests could not be met as TL loans were not being given anymore.
“ÖYAK is the only one to announce this situation for now, but many various banks are experiencing similar problems,” Sezinler said.