Decline in Central Bank reserves: The 'nullity' effect
The reserves of the Central Bank of the Republic of Turkey have fallen significantly in light of the first data released following the "absolute nullity" decision regarding the CHP. Significant losses were recorded in gross reserves, as well as in net reserves and net reserves excluding swaps.
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The latest weekly reserve data from the Central Bank of the Republic of Turkey (TCMB) showed that TCMB reserves experienced a serious decline in the week of May 22. Gross reserves fell to 160.17 billion dollars, a decrease of approximately 8.5 billion dollars in one week. The previous week, this figure was 168.6 billion dollars.
A similar decline was observed in net reserves. The TCMB's net reserves fell from 52.1 billion dollars to 47 billion dollars within one week, recording a decrease of 5.1 billion dollars.
The decline in net reserves excluding swaps reached a remarkable level. Net reserves excluding swaps, which were announced as 37.2 billion dollars the previous week, fell to 28.7 billion dollars in the week of May 22, thus dropping below 30 billion dollars once again.