Shrinking Turkish Central Bank’s forex reserves send jitters among investors

Republic of Turkey Central Bank’s (CBRT) net foreign reserves declined to 25.85 billion USD.

As of the week ended 26 April, CBRT’s foreign reserve calculated 152.376 billion lira.

CBRT’s foreign currency reserves declined to 26.873 billion dollars in the week ending April 19.

Economists worry that Turkey’s international reserves fell by over 1 billion dollars in the week of April 26.

The Financial Times reported that CBRT’s net forex reserves are much less than the official calculation when the short term debts and swap transactions are excluded from the net reserves.

The Financial Times report caused panic in the Turkish economy and the Turkish lira lost almost two percent of its values and slipped on Tuesday to 5.98.

The Turkish Lira gained value on Wednesday and traded at 5.72 against the US dollar.

However, the Lira weakened 0.5 percent in the last transaction day of the week and calculated between 5.79 to 5.82 against the US dollar.

“Economists and investors have homed in on net foreign currency reserve figures. The tally fell to $26.9bn in the week to April 19. However, stripping out the use of swaps brings the total to $14.9bn, down from $16bn the previous week and $35bn during the final week of February,” The Finacial Times reported.

Despite investors’ concern over Turkey’s foreign currency reserve figures, the CBRT announced that the net reserves increased to 28.4 billion dollars as of the end of last weekend.

The CBRT announced last week that net reserve amount was 27.9 billion Dollars. The Central Bank’s gross level stood at 75.57 billion dollars on April 19, due to strained relations with Washington and the Ruling Justice and Development Party’s election results in Istanbul.

Turkey needs to pay off a 118 billion US dollar debt within 12 months. The high amount of debt worries investors.

Turkish banking sector’s net profit decreases by 12 percent

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