CBRT's share in domestic debt stock continued to decline in October

While the Central Bank of the Republic of Turkey (CBRT) continues its simplification steps within the macroprudential framework, it also continues its trend of simplification on its balance sheet.

According to data from the Ministry of Treasury and Finance, the CBRT's share in the domestic debt stock fell to 4.3 percent as of October. Thus, the CBRT's share in these assets has reached its lowest level in a year.

In the 2023 Monetary Policy and Liraization Strategy document announced at the end of last year, it was projected that the CBRT's bond purchases would be increased to up to 7 percent of its balance sheet size in 2023.

However, following the earthquake disaster that shook Turkey in February of this year, it was observed that purchases of Government Domestic Debt Securities (DİBS) from banks via quotation and direct purchases from primary dealer banks continued, alongside the Private Pension System (BES) regulation.

With the impact of these developments, the CBRT's share in the domestic debt stock had risen to 7.4 percent in May. This marked the highest level observed since the pandemic. In June 2020, the CBRT's share in the domestic debt stock had climbed to 7.6 percent.

Following the change in management at the CBRT, a downward trend began in this share. The CBRT's share in the domestic debt stock fell below 6 percent in July and below 5 percent in September. In 2022, when the effects of the pandemic had dissipated, this share had declined to 4 percent.