Record loss from the Central Bank!

Sharp rises in exchange rates and economic fluctuations have dealt a heavy blow to the balance sheet of the Central Bank of the Republic of Turkey (TCMB). Closing the 2024 fiscal year with a loss of approximately 1.5 trillion TL, the Central Bank experienced one of the highest financial losses in its history.

Economist Uğur Gürses stated that a significant portion of the loss originated from currency movements. Gürses noted, "Bonds issued at low interest rates incurred losses as interest rates rose. This became a major reason for the total loss." Gürses further emphasized that while the goal is to cover the loss from future profits, this method would not provide permanent relief in the foreign exchange market.

INCREASED EXPONENTIALLY IN 2024

In addition to the 2024 losses, the burden carried over from the previous period is also noteworthy. According to Gürses' calculations, while the loss carried over from 2023 was at the level of 894 billion TL, this amount increased exponentially in 2024.

KKM ABOLISHED

On the other hand, the Central Bank has repealed the communiqué providing support for the Currency-Protected Deposit (KKM) scheme, which had been implemented for companies with foreign currency liabilities. The regulation, which went into effect on March 30, 2023, provided support for foreign currency conversion accounts for import payments and foreign currency loan repayments. The abolition of the KKM was among the measures taken by economic management in the face of fluctuations in foreign exchange markets.

News Source: 12punto