Turkey's net FX reserves rise to $10.6bn from 18-year low
- A week earlier the reserves - which have become the focus of the political opposition's criticism in recent weeks - had fallen to $9.93 billion, their lowest level since April 2003.
- The reserves plunged last year as state banks sold off $128 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 rose to $10.585 billion as of April 16, having dropped to an 18-year low a week earlier, data showed on Thursday.
A week earlier the reserves - which have become the focus of the political opposition's criticism in recent weeks - had fallen to $9.93 billion, their lowest level since April 2003.
The exchange rate used by Reuters on Thursday was 8.0567 compared to 8.1518 the previous week.
The reserves plunged last year as state banks sold off $128 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 under its former governor pledged earlier this year to replenish the buffer, President Tayyip Erdogan has said FX sales could re-start in the future.
Data showed the bank's outstanding swap transactions stood at $42.366 billion by Wednesday. The reserves are in deeply negative territory once the swaps are deducted.
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