Turkish net FX reserves fell to $10.96bn on March 12
- The exchange rate used by Reuters on Thursday was 7.4446 compared to 7.4524 the previous week.
- The reserves plunged last year as state banks sold off an estimated $130 billion to stabilise the lira, which still lost 20% of its value in 2020. Net forex reserves were around $41 billion at the end of 2019.
ISTANBUL: The Turkish central bank's net international reserves fell to $10.96 billion as of March 12 from $11.57 billion a week earlier, data showed on Thursday.
The exchange rate used by Reuters on Thursday was 7.4446 compared to 7.4524 the previous week.
The reserves plunged last year as state banks sold off an estimated $130 billion to stabilise the 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 in 2019 and 2020 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 stood at $42.224 billion by Wednesday. The reserves are in deeply negative territory once the swaps are deducted.
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