Sharp decline in Central Bank reserves after the war

The Central Bank of the Republic of Turkey (CBRT) recorded a significant decline in its reserves last week. According to calculations by banking sources, total reserves fell by approximately 22 billion dollars in the week ending March 27, dropping to the 155.5 billion dollar level.

THE IMPACT OF FOREIGN EXCHANGE INTERVENTION STANDS OUT

According to information reported by Reuters, one of the main reasons for the decline in reserves was the interventions made in the foreign exchange market. It is estimated that the foreign exchange sales carried out last week were at the level of approximately 18 billion dollars.

SALES INCREASED DUE TO THE HOLIDAY EFFECT

Sources state that total foreign exchange sales reached a higher level due to the impact of the holiday period. Accordingly, it is stated that total sales during the period in question amounted to approximately 44 billion dollars.

DECLINE IN NET RESERVES AS WELL

A decline was also calculated in the Central Bank's net reserves during the same period. According to banking sources, net reserves decreased by approximately 22.5 billion dollars, falling to the 35 billion dollar level.

ALL EYES ON OFFICIAL DATA

These calculations are based on the preliminary balance sheet data published by the CBRT. The official data regarding the Central Bank's reserves is expected to be announced on Thursday.

TOTAL LOSS SINCE THE WAR REACHES 55 BILLION DOLLARS

According to assessments by banking sources, it is estimated that the total loss in Central Bank reserves since the date the war began in Iran has reached approximately 55 billion dollars.

News Source: 12punto