The selling trend of foreign investors in Turkish Lira-denominated assets has entered its third week in the bond market. According to the Central Bank of the Republic of Turkey's (CBRT) weekly securities statistics, following the fund crisis that became apparent in the week of September 18, the total net sales by foreigners in government bonds and private sector bonds have exceeded 1.8 billion dollars.
During the three-week period, foreign investors realized net sales of 1 billion 8 million dollars in government domestic debt securities and 826 million dollars in private sector bonds. Thus, the outflow from the two bond categories reached 1 billion 834 million dollars.
In the week ending October 2, it was observed that foreign investors were net sellers across all TL assets. In the same week, net sales of 189.9 million dollars in stocks, 484.7 million dollars in government bonds, and 60 million dollars in private sector bonds were recorded.
On the stock side, there were sales in two of the last three weeks and purchases in one. Despite this, along with the period when the fund crisis came to the fore, the net position of foreign investors in TL assets formed a total of 1.77 billion dollars in sales. The downward movement observed in the market this week has strengthened expectations that the foreign outflow is continuing.
INCREASE IN FOREIGN CURRENCY DEPOSITS CONTINUED
While the exit of foreign investors from TL assets is being monitored, the increase in foreign currency deposits of domestic residents also continued. According to the CBRT's weekly money and banking statistics, in the week of October 2, the foreign currency deposits of domestic residents increased by 861 million dollars, adjusted for parity effects.
Of this increase, 423 million dollars came from individuals and 428 million dollars from legal entities. Thus, the three-week increase in the foreign currency deposits of domestic residents rose to 5.22 billion dollars, adjusted for parity effects. It was noted that the strongest increase occurred in the week ending September 18.
As for CBRT reserves, the decline in total reserves has extended to the sixth week. In the week of October 2, total reserves fell from 171.2 billion dollars to 167.4 billion dollars. While net reserves rose from 53.4 billion dollars to 53.8 billion dollars, net reserves excluding swaps fell from 39.9 billion dollars to 37.9 billion dollars.
News Source: 12punto
