Central Bank's dollar reserves at 'historic record' level: Hakan Kara's statement on 'suppression'

The Central Bank of the Republic of Turkey (TCMB) has announced its reserve data for the week of February 14. Gross foreign exchange reserves increased by 3.7 billion dollars compared to the previous week, reaching 100.6 billion dollars. Total reserves were recorded at 173.1 billion dollars, an increase of 5.6 billion dollars.

When swap transactions are excluded, net reserves reached a record level of 71.5 billion dollars. Gold reserves also increased by 1.9 billion dollars to 72.4 billion dollars.

Gross foreign exchange reserves, which were at the 96.9 billion dollar level on February 7, showed a significant increase within one week. The rise in total reserves has strengthened the Central Bank's position in international markets.

Former TCMB Chief Economist Hakan Kara made a post on his X account on February 17 regarding the reserves hitting a historic record, stating the following:

'There is a widespread belief that the exchange rate is being suppressed through foreign exchange interventions. Yes, the exchange rate is currently being suppressed, but not to prevent it from rising, but to prevent it from falling.'

In another post today, Kara provided information that reserves have reached a historic high level.

The Central Bank's both net and gross reserves are at the highest level in history. pic.twitter.com/stXkIZP4yQ

— Hakan Kara (@ali_hakan_kara) February 20, 2025

According to the TCMB's weekly money and banking statistics, this increase in reserves has contributed to an increase in foreign exchange liquidity in the economy. On the other hand, Kara's statement that the exchange rate is being suppressed to prevent reserves from falling led to comments on social media that the economy has not yet 'found its balance.'