Economic impact of the US-backed Israel-Iran war on Turkey revealed! Sharp decline in Central Bank reserves

As the hot conflict between the US, Israel, and Iran enters its tenth day, Turkey has begun to feel the economic effects of this global shock. The Central Bank of the Republic of Turkey (TCMB) has moved to a continuous increase in reserve usage and foreign currency sales in order to suppress fluctuations in the foreign exchange market.

According to the latest data from bankers, as of the end of last week, the TCMB's total reserves decreased by approximately 12.5 billion dollars, falling to 197.5 billion dollars. In the same period, the decline in net reserves reached 13 billion dollars, with net reserves pulling back to 79 billion dollars. In net reserves excluding swaps, a loss of 14 billion dollars was experienced, bringing the level down to 65 billion dollars.

Foreign currency sales intensified particularly last week. According to market sources, 13 billion dollars of the TCMB's foreign currency sales from just last week were reflected in the balance sheets. It is expected that an additional amount of approximately 5 billion dollars from sales made on the last trading day of the week will be added to next week's data. Furthermore, it is stated that the total of foreign exchange transactions that took place on Monday is estimated to be between 13 and 15 billion dollars.

The official reserve figures belonging to the Central Bank are expected to be announced on Thursday. Experts in the banking sector state that the recent activity and the increasing tension in global markets reveal the scale of state-backed interventions in the foreign exchange market.

News Source: 12punto