The Communique Amending the Communique on Deposit and Participation System (Yuvam) Accounts for Residents Abroad (“Communique”) published in the Official Gazette, dated 22/3/2022, and numbered 31786. By the Communique, (i) Turkish citizens residing abroad, (ii) foreigners granted Blue Card as per the Article 28 of the Turkish Citizenship Law No. 5901, and (iii) foreign natural and legal persons that meet the requirements for opening bank accounts in Turkey. The requirements are to be set forth by the Central Bank of the Republic of Turkey (“CBRT”).
Yuvam account, a time deposit bank account, could be opened for 3, 6 and 9 months maturity periods. It enables account holders (i) to convert the balances in the foreign currency deposit accounts and/or foreign currency participation funds into Turkish lira at the conversion rate valid on the actual date of conversion and (ii) to receive, either the principal amount and interest/dividend or the amount corresponding to the converted amount of foreign currency -whichever is higher. In other words, by Yuvam account, in any circumstances, the principal amount in the account is meant to be protected in correspondence with the foreign currency converted whereas it provides bank account holder an interest when the foreign currency devaluated against Turkish Lira. It is important to point out that the types of currency to be converted into Turkish Lira in the scope of Yuvam accounts is restricted to USD, EUR, and GBP.
Should you have further questions please do not hesitate to contact us.