Sharp decline in reserves and foreign exchange deposits of Turkey’s Central Bank

The series of decreases in the reserves of the Central Bank (CBRT) continued last week. The decline in Central Bank reserves and residents’ foreign currency deposits continued last week.

Gross reserves fell by $2.3 billion to $122.4 billion last week and net reserves fell by $0.4 billion to $18.5 billion.

Taking into account the foreign currency borrowed by the CBRT from domestic and foreign banks by swap for a certain period of time, the net reserve decreased by $ 1.3 billion to -43 billion last week.

FOREIGN CURRENCY DEPOSITS DECLINED, KKM INCREASED

Foreign currency deposits of domestic residents also decreased by $ 2.8 billion to $ 183.7 billion last week due to the impact of the release of KKM interest rates.

The parity-adjusted decrease in residents’ foreign exchange deposits last week was $ 3.1 billion. Of this decrease, $ 802 million was from actual deposit holders (people) and $ 2.3 billion belonged to companies.

The volume of exchange rate protected deposits (KKM) increased by TL 28.2 billion last week to TL 1 trillion 701 billion.

Foreigners bought $ 15 million of bonds (net) from Turkey last week, while selling $ 61 million of shares.