Sharp decline in Central Bank reserves following 'Absolute Nullity' ruling: Anxiety grows in markets

Current data regarding the Central Bank of the Republic of Turkey (TCMB) reserves continue to be closely monitored by the markets. According to calculations, while total reserves were at the level of 168.6 billion dollars in the week of May 15, 2026, this amount fell to approximately 160.2 billion dollars in the week of May 22. Thus, a significant decrease in reserves has emerged with the declines experienced for two consecutive weeks.

Experts are of the opinion that this volatility in reserves will have significant effects on exchange rates, external financing flows, and the Central Bank's liquidity management.

VOLATILE TREND IN RESERVES

A volatile trend has been observed in the TCMB's reserves since the beginning of the year. Total reserves, which broke a historical record with 218.2 billion dollars on January 30, 2026, experienced both increases and decreases at certain intervals in the subsequent period. Following a three-week consecutive rise in March and April, it turned back to a decline in May. The decline that began in the week of May 1 accelerated in the week of May 22.

The rapid decrease in reserves, which had reached record levels especially in the first months of the year, has brought concerns along with it in economic circles.

EYES ON THE NEW REPORT

The official reserve figures of the TCMB are expected to be announced on Wednesday, June 3, at 14:30. Economists state that the data to be released will be decisive in terms of the foreign exchange market and monetary policy. Furthermore, it is pointed out that the acceleration of the recent volatility in reserves should be closely monitored, especially in terms of financial stability.

As experts have also emphasized, the recent decline in reserves has created activity in the foreign exchange market. It is thought that the steps the Central Bank will take in the coming days will be effective on the markets.

This rapid decline in TCMB reserves has brought the question of what policy the economic administration will follow in the coming period to the agenda.

News Source: 12punto