Turks' FX holdings dip to $235bn, still near record
- When adjusted with the parity effect, the data showed the hard currency holdings fell by only $27 million in the period.
- The central bank is watching keenly for a reversal in this dollarization trend before it starts rebuilding its depleted FX reserves.
ISTANBUL: Turkish locals' forex and precious metals holdings fell to $234.73 billion in the week to Feb. 19, according to central bank data on Thursday, from $235.63 billion a week earlier.
When adjusted with the parity effect, the data showed the hard currency holdings fell by only $27 million in the period.
The FX holdings touched a record high of $236.11 billion in January, underlining Turks' efforts to hedge against double-digit inflation and an ailing lira, which lost 20% of its value against the dollar last year.
The central bank is watching keenly for a reversal in this dollarization trend before it starts rebuilding its depleted FX reserves.
Data also showed on Thursday that foreign investors bought $194.5 million worth of Turkish government bonds in the week to Feb. 19, and sold $122.8 million worth of stocks.
Separately, data showed the central bank's gross forex reserves rose to $53.86 billion in the same period from $53.72 billion a week earlier.
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