CBRT gross reserves hit record high as of last week

The upward momentum observed for some time in the reserves of the Central Bank of the Republic of Türkiye (CBRT) has resulted in a record.

According to CBRT data, gross reserves reached a historic level of 136.5 billion dollars as of the week of November 24.

A recovery was also observed in net reserves. The bank's net reserves rose to 35.8 billion dollars in the week of November 24. The previous week, reserves were at the 29 billion dollar level.

Net reserves excluding swaps also recovered from minus 52.9 billion dollars to minus 51 billion dollars last week.

Economic management has recently been emphasizing the improvement in reserves. Minister of Treasury and Finance Mehmet Şimşek, while referring to the recovery in reserves, had also given some messages regarding net reserves excluding swaps.

Şimşek stated, "We have reached the highest reserve level since 2014. You might say, what about the swaps... Swaps with local banks are done based on their needs. Because the demand for foreign currency loans is limited, but the demand for TL loans continues. So, what is important for me is the reserve cleared of foreign swaps, which is positive and strongly positive."

MESSAGES ON RESERVES FROM ERKAN

CBRT Governor Hafize Gaye Erkan also emphasized the recovery in reserves in her recent messages.

In a meeting she attended at the Istanbul Chamber of Industry (ISO), Erkan said, "The effect of Western fund inflows has also been observed in the recent increase in reserves. By making the increase in reserves permanent in the coming period, we will establish the development of foreign demand for TL assets in the best way for our country."

CBRT officials speaking to Reuters stated that they observed fund inflows into the TL from US institutional investors, and that ongoing discussions indicated that these inflows would continue.

News Source: 12punto