The cost of the 'absolute nullity' ruling was heavy: Central Bank sold another 7 billion dollars

In a week of increased market volatility, a striking claim has emerged regarding the foreign currency sales conducted by the Central Bank of the Republic of Turkey (TCMB). According to calculations based on banking sources by Reuters, the TCMB sold approximately 7 billion dollars in foreign currency during the period when the "absolute nullity" ruling regarding the CHP was influential.

It was stated that the majority of these transactions took place on Thursday, the day the ruling was announced.

CLAIM THAT 3 BILLION DOLLARS OF SALES OCCURRED AFTER THE RULING

In the calculations based on bankers interviewed by Reuters, it was alleged that a significant portion of the approximately 7 billion dollars in foreign currency sales was made following the "absolute nullity" ruling regarding the CHP.

The report stated that approximately 3 billion dollars of the total sales consisted of transactions carried out directly after the ruling.

EFFECT OF THE IRAN WAR ALSO HIGHLIGHTED

It was reported that the remaining portion of the foreign currency sales took place before the CHP ruling.

According to banking sources, global market concerns stemming from the Iran war were influential in these transactions.

It was assessed that volatility in the markets increased due to both domestic political developments and geopolitical risks.

CALCULATION OF A 5 BILLION DOLLAR DECLINE IN TCMB RESERVES

According to the calculations of two bankers reached by Reuters, there was a decline of approximately 5 billion dollars in the net reserves of the Central Bank of the Republic of Turkey last week.

In these calculations, it was stated that the TCMB's net reserves fell to a level of approximately 47 billion dollars.