CBRT’s historic forex purchase boosts reserves by $7.5B

The central bank’s historic foreign exchange purchase leads to a $7.5 billion surge in reserves, reaching $134.4 billion

The Central Bank of the Republic of Türkiye (CBRT) recently made a historic foreign exchange purchase, significantly boosting reserves. Last week, reserves surged by $7.5 billion to reach $134.4 billion – marking the most significant increase in three years.

This upward trend continued for the second consecutive week, with reserves rising by $10.32 billion over the past two weeks. As of May 10, total reserves increased by $7.547 billion, with gross reserves reaching $74.203 billion and gold reserves climbing to $60.199 billion.

The central bank’s focus on foreign exchange purchases intensified after the elections, culminating in a record-breaking daily purchase of $4.2 billion on May 10.

This brought the total purchases post-election to $41.8 billion.

Central bank President Fatih Karahan emphasized the importance of reducing inflation to bolster the Turkish lira’s demand and improve reserve positions.

“The demand for the Turkish lira will increase and we are seeing signs of this. If we bring down inflation, we will already have an easier and more permanent improvement in our reserve position,” Karahan said.

He highlighted the bank’s commitment to accumulating reserves without disrupting market conditions, intending to permanently improve inflation and reserve positions in the medium to long term.

We are trying to improve our reserve position by buying foreign exchange without disrupting market conditions. If we can reduce inflation permanently in the medium and long term, our reserve position will also improve in a healthy and permanent manner,” he stated.

Source: Newsroom