MarketsBusinessTurkiye

The Central Bank Shifts to Buyer Position in Foreign Currency Post-Elections

After the local elections, the demand for foreign exchange in the market reversed. While there was a decline in Dollar/TL, it was reported that the Central Bank took a buyer position in foreign currency after a long time.

Following the 500 basis point interest rate increase by the Central Bank of the Republic of Turkiye (CBRT) and the completion of the local elections, the demand for foreign exchange in the market reversed.

It was stated that the CBRT took a buyer position in the foreign exchange markets yesterday.

According to the news in Bloomberg HT, the CBRT’s foreign exchange purchases started with the decline of Dollar/TL towards 31.90.

Since the CBRT’s foreign exchange purchases are not within the scope of direct intervention, the total amount of foreign exchange purchases is not disclosed.

Meanwhile, the Central Bank’s reserves also increased.

Net reserves increased by nearly $1 billion last week, according to bankers’ calculations.

After the interest rate increase, net reserves increased by $200 million.

Source: NTV / Prepared by Irem Yildiz

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