ANKARA: The Turkish Central Bank's net reserves rose towards $20 billion last week, according to four bankers' calculations based on preliminary data, with forecasts ranging between increases of $2.5 to $4 billion.
The central bank's net international reserves slipped to $15.82 billion on Feb. 11 from $16.33 billion a week earlier, data showed last week.
Forex reserves tumbled in recent years, most recently due to billions of dollars the bank sold in market interventions to stem a currency crisis in December.
Bankers and economists estimate the central bank spent $20 billion in December and $3 billion in January supporting the lira.
Turkish central bank's net FX reserves down to $15.82bn
Reserves hit their lowest level since 2002 in mid-January before recovering after measures to bring in foreign currency and the introduction of swap agreements with foreign countries.
"We calculate that net reserves rose $3 billion last week, while total reserves fell $500 million," one trader said.
The rise is expected to be less than the amount of forex generated by a scheme launched in December to protect lira deposits from depreciation, indicating that reserves are still being used for exchange rate stability, the trader added.
The lira tumbled 44% against the dollar last year after the central bank pushed through 500 basis points of unorthodox interest rate cuts from September under pressure from President Tayyip Erdogan.
State forex market interventions and the lira protection scheme bolstered the lira after it hit a record low of 18.4 last year, helping it maintain a steady course in 2022.
It faced pressure on Tuesday due to the Ukraine crisis.
The reserves data is being followed closely by markets to understand whether the stable lira trend will continue. Net reserves remain deeply in negative territory when adjusted for swaps.
Bankers said calculating the rise in reserves accurately is complicated by the fact that the amount of forex which the central bank receives from exporters is not announced, while forex sales to energy importer BOTAS limit the rise in reserves.
Forex sales to Turkey's state economic enterprises - primarily BOTAS - hit a record $4.15 billion in January, bringing the total in the last three months to $9.7 billion.
The weekly central bank data on forex reserves will be announced at 1130 GMT on Thursday.
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