Turkey's central bank's reserves dip from max hint to $177.9 billion
Foreign investors have continued their sell-off in Turkish stocks for a third consecutive week, withdrawing a net $164.9 million from the Turkish stock market. This sell-off comes as the Central Bank of Turkey (CBRT) has seen a decrease in its net reserves, which dropped from $71.3 billion to $69.6 billion.
Despite an increase in gold reserves, the CBRT's net reserves decreased, indicating that the decline in foreign exchange reserves outweighed the growth in gold reserves. The price of gold reached record-breaking levels, causing the value of the CBRT's gold reserves to increase by $2.43 billion, from $90.93 billion to $93.36 billion.
The CBRT's gross international reserves, including gold reserves, currently stand at $177.9 billion, a decrease of $4.68 billion compared to the previous week's all-time high of $180.1 billion. The decline in the CBRT's gross international reserves was not accompanied by a specific reason provided by the bank.
Meanwhile, the value of foreign-held equities declined to $30.96 billion in the week ending Sept. 12. Conversely, foreign-currency deposits rose by 1.7% to ₺8.29 trillion ($240.4 billion), with ₺201.6 billion belonging to residents.
In the banking sector, deposits denominated in Turkish lira increased by 2.6%, reaching ₺14.17 trillion ($343.1 billion). Holdings of private-sector bonds decreased from $835.4 million to $665.5 million, while foreign investors' holdings of government domestic debt securities rose from $14.49 billion to $15.08 billion.
One positive note is the growth in consumer loans held by residents, which increased by 1.6% during the same week, rising to ₺5.05 trillion ($162 billion).
The CBRT did not provide any comment on the ongoing sell-off by foreign investors or the decline in its reserves. As the situation continues to develop, it will be important to monitor these trends and their potential impact on the Turkish economy.
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