TURKISH LIRA YUVAM ACCOUNT: FX Protected Account for Foreigners

The Turkish Citizenship by Investment Program introduced changes back in January 2022. This change mainly impacted foreign investors seeking citizenship through the bank deposit option. Due to the goal of boosting the economy, the government requests investments in Turkish Lira. In other words, they request investors to convert their 500,000-USD investment into Turkish Lira and deposit it into the bank for three years. While this new rule has decreased the demand for the traditional bank deposit option due to the volatility of the Turkish Lira, there are promising alternatives. Hence, in this article, we will explore the drawbacks of the bank deposit option. Moreover, we will introduce you to the advantages of the YUVAM account.

Turkey Citizenship by Investment: The Drawbacks of the Bank Deposit Option

Previously, foreign investors had the flexibility to maintain their investment in foreign currency or gold. However, the government now mandates the conversion of the 500,000-USD investment into Turkish Lira. In addition, government asks investors to keep it as Turkish Lira. This shift aims to bolster the national currency and stimulate economic growth within Turkey. However, the inherent fluctuations in the Turkish Lira have led to a decrease in demand for the traditional bank deposit option among foreign investors.

Consequently, volatility of the Turkish Lira poses a significant challenge for foreign investors participating in the Turkish Citizenship by Investment Program. With currency fluctuations, the value of the Turkish Lira can experience rapid changes, potentially affecting the return on investment for individuals participating in the bank deposit option. This uncertainty has led many investors to seek alternatives that provide more stability and protection for their funds.

Introducing the YUVAM Account

Thankfully, the YUVAM account offers a compelling solution for foreigners participating in the Turkish Citizenship by Investment Program. Specifically designed to meet the program’s new regulations, the YUVAM account provides a secure and lucrative banking option. Unlike the bank deposit option, the YUVAM account ensures compliance with the program’s requirements while offering attractive interest rates. Moreover it provides and capital protection, which makes it ideal banking solution for foreigners.

Thus, if you’re a foreigner residing outside of Turkey and looking to open a bank account, the YUVAM account presents an enticing opportunity. While Exchange Rate Protected Deposit Accounts may not be accessible to foreigners, the YUVAM account offers a similar alternative that combines security and attractive interest rates.

Advantages of the YUVAM Account

The YUVAM account operates by converting the investor’s foreign currency into Turkish Lira (TRY) upon opening the account. Bank promises an 8,5% interest rate to the equivalent TRY amount, which is calculated on the day the account is opened.

In addition to the TRY interest, YUVAM accounts offer additional interest. To clarify, this additional interest will be calculated over the TRY equivalent of the capital, according to the exchange rate of the due date. For instance, for 24-month-long deposit accounts, YUVAM account offers an additional 6% interest rate.

Consequently, by providing this enticing interest rates, the YUVAM account ensures that your funds can grow significantly over the deposit period.

Capital Protection Guarantee

Aboce all, YUVAM account distinguishes itself by offering a unique capital protection guarantee. On the account’s due date, the bank assures that, you will receive your original capital in the foreign currency, along with an additional amount. In the event of a potential loss in your capital due to exchange rate fluctuations, the Central Bank of Turkey guarantees that you will receive the TRY equivalent of the difference. Thus, this safeguard provides peace of mind and reassurance to account holders.

Consideration for Long-Term Planning

It’s important to note that, at present, YUVAM accounts can only be opened for a maximum period of 24 months. After this period, there may not be an option to renew the account, necessitating a search for alternative solutions. The bank or Central Bank of Turkey does not guarantee the security of your capital funds in a foreign currency beyond this initial period. However, Turkey is known to be the country for quick solutions and attractive alternatives to foreigners. Therefore, it is highly possible to find an attractive alternative to YUVAM accounts in the future as well.

Conclusion

While the recent changes to the Turkish Citizenship by Investment Program have impacted the demand for the traditional bank deposit option, the introduction of the YUVAM account offers a promising alternative. With its attractive interest rates and capital protection guarantee, the YUVAM account provides a secure and profitable banking solution for foreign investors. By leveraging this innovative account, participants can navigate the requirements of the program while optimizing their investment potential. As the Turkish Citizenship by Investment Program continues to evolve, the YUVAM account stands out as a valuable tool for foreigners seeking Turkish citizenship through investment.