Capital controls

[£eagle]

My bank has just informed me that they cannot complete a money transfer to the UK unless I can provide a commercial reason supported by documentary evidence. This sounds as if some capital controls have been introduced by the Central bank. Something like that is happening in Turkey. I hope that is the reason.

[Mowgli597]

In response to a query regarding any restrictions on the transfer of (in my case) euro out of Northern Cyprus I received the following from my bank (Creditwest).

“No there isnt any restrictions.

I understand your concerns but please note that our economy and Central Bank is seperate to Turkey.

Turkey does not have the authority to intervene in our system, economy or banks.

All savings accounts in all the following currencies Turkish lira, Sterling, Euro's, and US Dollars are guaranteed by the TRNC Central Bank.

We are still the strongest and biggest local bank, nothing has changed.

PS.Will send you our Central banks press release in seperate e-mail” (see below)


NORTHERN CYPRUS CENTRAL BANK OF THE TURKISH REPUBLIC -NORTHERN CYPRUS BANKING UNION PRESS RELEASE

To evaluate and exchange views on recent economic developments a meeting has taken place with the participation of all our banks General Managers and country directors.

The impact of the developments on the financial markets, banks and consumers were evaluated in detail.

At the meeting;

The financial structure of our banks is extreamely [sic] healthy and we can confirm that they continue to fulfill uninterrupted banking services without any restrictions.

As of today, although no need is found, the TRNC Central Bank have expressed that they have enough resources and are ready with liquidity support for all currencies, and will provide sufficient support to all the banks.

To resolve the problems of bank customers with foreign currency loans all banks have come to an agreement to extend the loans maturity to suit the customers repayment abilities. Individual borrowers should apply to their banks.

All banks have agreed on and are ready to meet and collaborate with commercial customers to resolve any loan repayment problems based on the companies/commercial customers own different working priciples.

Customers should not have the slightest concerns about the functioning of the banks and the provision of services to the economy.

TRNC CENTRAL BANK - NORTHERN CYPRUS BANKING UNION

[£eagle]

My bank says it is complying with a requirement of the Central bank in refusing to transfer without proof of commercial need. Maybe there are other restrictions unconnected to the present lira woes.

[suecheshireuk]

We transferred our sterling to the UK without a problem, though we have sold our house and leaving the island.

[archie]

Transferred sterling to uk with creditwest today no ploblem.

[£eagle]

Money sent after a couple of days. The restrictions on the transfer were for money laundering control not capital controls. So, it seems, I must have a striking similarity to a drug dealer or people trafficker. An unlikely career change at my age.