The number of Russian depositors in Turkish banks is growing after Western sanctions. Turkey wants to make Istanbul an international financial center with little chance.
Thousands of Russians are fleeing their country to Turkey after sanctions were imposed on Russia. Younger people try to get money with their card from the ATMs of Turkish banks, but they do not work. They have to change the rubles they have with them, albeit at a low price, or if they have euros or dollars, for the better. Recently, Turkish banks have noticed how popular their accounts have become for wealthier Russian citizens. Those who are not on the sanctions list can still open an account.
“It will not have an impact on Turkey”
Of course, as Kerim Rota, former deputy governor of the Turkish bank AKBANK, believes, large sums will not be accepted, because then there is a suspicion of money laundering. “The chances of transfers being smaller amounts – a few million at a time – are higher,” he says. “I guess small amounts will initially flow into Turkey that could have an impact on Turkey, but over time they will increase, and may reach $ 10 billion to $ 15 billion.” This sounds more than it really is, adds the former banker.
because in relation to the GDP of Turkey, which currently amounts to 800 billion dollars, an inflow of 10 or 15 billion is not very significant. Usal Shahbaz, financial editor at the renowned Dunya newspaper, says no more money will be expected. “It is said that about 3 billion have flowed in so far, which is reliable and realistic,” he says. “If more will come, maybe up to $ 30 billion, it’s hard to say in advance. Because most of the money must have already arrived and the trend is likely to slow.”
Best Dubai
So the Turkish journalist does not expect special effects on the Turkish economy either. Because the country is not very attractive, but rather neutral. The authorities’ efforts to take advantage of the situation and make Istanbul a new global financial center do not seem to have much prospect of success. “There are other financial centers like London, Frankfurt, even Amsterdam, but also Dubai. It is difficult for Istanbul to compete with these cities at the moment.”
On the other hand, those who move their funds to London are likely to be under a lot of pressure under the current circumstances. Because they have to take care of how to keep their assets. For some it is difficult to liquidate them. “Only if they are not real estate or other investments in gold, gemstones or cryptocurrencies can they be transported abroad,” Ushal Shahbaz said. But there are more attractive countries than Turkey, such as Dubai. Because that is where the Anglo-Saxon legal system applies.
Uwe Lib / ARD
Edited by: Irini Anastassopoulou
Source: Deutsche Welle
Source: Capital
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