44 billion dollar increase since the elections: New record in Central Bank reserves
According to bankers' calculations, the Central Bank (TCMB) total reserves rose by over 1 billion dollars last week to reach a new historical peak of 142.5 billion dollars, while the increase in reserves since the elections has reached 44 billion dollars.
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The Central Bank of the Republic of Turkey's reserves were discussed by 4 bankers speaking to Reuters, who stated that total reserves, which were announced as 141.37 billion dollars for the week ending December 8, saw an increase of 1.1-1.3 billion dollars in the week of December 15.
NEW HISTORICAL PEAK IN RESERVES
According to the bankers' calculations, total reserves will rise to a new historical peak in the 142.5-142.7 billion dollar band. The Central Bank has not yet commented on the calculated reserve data.
44 BILLION DOLLAR INCREASE SINCE THE ELECTIONS
The upward trend in reserves, which began after the cessation of reserve sales used to determine the level of the Turkish Lira following the elections, has continued from June to the present. In total reserves, which had fallen to just under 100 billion dollars during the elections, the increase over the past approximately six months has reached 44 billion dollars.
The obligation for export companies to sell a certain portion of their foreign exchange earnings to the TCMB and the beginning of foreign fund inflows are also supporting the increase in reserves.
EFFECT OF INTEREST RATE HIKES
The fact that the TCMB raised the policy rate from 8.5 percent to 40 percent during this period also made the Turkish Lira more attractive.
The relevant data can be calculated from TCMB analytical balance sheet data and leading indicators. Official data will be announced on Thursday at 14:30.