Bloomberg published the article, "Turkey Limits Money-​Market Funds as Savers Hunt for Yield" last month, but we hadn'​t noticed until recently. The piece tells us, "Turkish authorities imposed a limit on how much cash money-​market funds can hold after savers flocked to the higher-​yielding instruments to protect themselves against rampant inflation, draining bank deposits. Money-​market funds need to invest at least half of their holdings in deposit accounts at the nation'​s commercial lenders, compared with a maximum 10 percent previously, according to a Capital Markets Board ruling on Tuesday night. Since the beginning of the year, the size of money-​market funds more than doubled to 28.​5 billion liras ($​5.​2 billion), according to data from Istanbul Clearing, Settlement and Custody Bank Inc., or Takasbank." Bloomberg adds, "The rush to money markets comes as the government leans on lenders to lower interest charges, driving deposit rates to levels that barely compensate savers for inflation running at 20 percent. That forced them out of traditional bank deposits and fueled a rush for dollars. Money-​market funds yield around 21 percent, according to Turkey Electronic Fund Trading Platform, compared with an average 19 percent on one-​month deposits."

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