Islamic Finance

Turkey allows payment agencies to use sukuk as required deposit at cenbank

| 12 October, 2018
Turkey allows payment agencies to use sukuk as required deposit at cenbank
FILE PHOTO: A money changer counts Turkish<span class="highlight"> lira </span>banknotes at a currency exchange office in Istanbul,<span class="highlight"> Turkey </span>August 2, 2018. Picture taken August 2, 2018. REUTERS/Murad Sezer//File Photo

OCTOBER 12, 2018 | 1:58AM EDT | ISTANBUL

Turkey will allow payment agencies to hold the required deposit of 1 million lira ($169,425) at the central bank in the form of a sukuk as well as in the form of cash or government debt securities, a statement in the Official Gazette said on Friday.

Turkey’s BDDK banking watchdog will be able to impose a requirement of additional equity on payment agencies to allow them to operate, the statement also said, adding that such institutions will not be allowed to work in areas other than operating payment systems.

($1 = 5.9023 liras)

(Reporting by Ali Kucukgocmen; Editing by Daren Butler)

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