Central Bank resumes foreign currency purchases

The Central Bank of the Republic of Türkiye (TCMB) has resumed foreign currency purchases as of yesterday, following approximately 10 billion dollars in foreign currency sales conducted over the last two weeks. This development occurred as the TCMB, which had turned to foreign currency sales due to the dismissal of the CHP provincial organization and the subsequent political uncertainties, took advantage of the positive atmosphere in the markets.

TWO WEEKS OF FOREIGN CURRENCY SALES APPROACHED 10 BILLION DOLLARS

In the first week of September, according to official data, the TCMB sold nearly 5.5 billion dollars in foreign currency. In the second week, this figure reached between 4 and 4.5 billion dollars, according to traders' calculations. During this period, concerns over political crises drove investors away from Turkish Lira assets and toward foreign currency.

Following the court's decision to postpone the CHP convention case, the TCMB's return to foreign currency purchases created a positive atmosphere in the markets. A significant recovery was observed in the stock market, CDS, and TL-denominated bonds. During this process, the appreciation of gold prevented a serious loss in the TCMB's reserves. While total reserves had reached 180 billion dollars at the beginning of the month, they fell below 178 billion dollars last week.

The TCMB's resumption of foreign currency purchases has had a positive impact on the markets and continues to attract the attention of investors. It is awaited with curiosity whether foreign currency purchases will continue in the coming days and how this will reflect on the markets.

News Source: 12punto