While TL deposits decreased in banking, foreign currency deposits increased

Turkish banking sector deposits fell by TRY 175.7 billion in the week to November 6, bringing total deposits to TRY 33.93 trillion, according to regulator BDDK data. The decline was driven by lira-denominated accounts, while foreign-currency deposits increased over the same period, underscoring continued dollarization pressure on the sector. The shift matters because it signals households and firms favoring hard-currency savings over lira holdings, a key gauge for the central bank's disinflation and reserve strategy. Investors will watch upcoming weekly BDDK releases for whether FX deposit growth accelerates and whether lira deposit rates rise to stem the outflow.