Turkish net FX reserves climb to $13.93bn
- The exchange rate used by Reuters on Thursday was 7.1924 compared to 6.9527 the previous week.
- The reserves plunged last year as state banks sold off an estimated total of $130 billion to stabilise the ailing lira, which still lost 20% of its value in 2020.
ISTANBUL: The Turkish central bank's net international reserves rose to $13.93 billion as of Feb. 26 from $12.15 billion a week earlier, data showed on Thursday.
The exchange rate used by Reuters on Thursday was 7.1924 compared to 6.9527 the previous week.
The reserves plunged last year as state banks sold off an estimated total of $130 billion to stabilise the ailing lira, which still lost 20% of its value in 2020. Net forex reserves were around $41 billion at the end of 2019.
Analysts say the central bank used swaps with local banks to prop up its forex reserves. The unorthodox policy spooked foreign investors and raised the risk of a balance of payments crisis, though the bank has pledged to replenish the buffer.
Data showed the bank's outstanding swap transactions fell around $4 billion since the beginning of the year to $39.897 billion by Wednesday, meaning the reserves are in deeply negative territory once the swaps are deducted.
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