Local Turkey

Turkey: Central Bank reserves hit $90.3B in July

Official reserve assets rose 4.5% of which $45.1B foreign currency reserves, $43.6B gold reserves

Official reserve assets of the Turkish Central Bank reached $90.3 billion as of end-July, rising 4.5% month-on-month, according to data from the bank on Friday.

Foreign currency reserves — in convertible foreign currencies — decreased 1.4% to $45.1 billion during the same period, the bank’s international reserves and foreign currency liquidity report showed.

Last month, the bank’s gold reserves including gold deposits and, if appropriate, gold swapped hit $43.6, climbing 11.5% from a month earlier.

Meanwhile, the bank’s official reserves slipped 9% year-on-year, down from $99.4 billion at the end of July 2019.

In December 2013, its total reserves hit their all-time peak at nearly $136 billion, including some $21 billion in gold reserves.

Liability side

Short-term predetermined net drains of the central government and the Central Bank — foreign currency loans, securities, and foreign exchange deposit accounts of residents abroad within the bank — surged 17.1% to $24.9 billion.

It said $19.8 billion of this amount was principal repayments and $5.1 billion was interest repayments.

The contingent short-term net drains on foreign currency totaled $34.1 billion last month, up 22.1% from the previous month.

According to the bank’s definition, the contingent short-term net drains on foreign currency consist of “collateral guarantees on debt due within one year” and “other contingent liabilities,” which are the banking sector’s required reserves in blocked accounts in foreign currency and gold, and the letters of credit items on the Central Bank’s balance sheet.

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Anadolu Agency

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