Deputy President Yilmaz touts surge in reserves as game-changer in deflation battle
“We will continue to witness the effects of our steadfastly implemented program both in the real sector and financial markets,” Deputy President Yilmaz says
Deputy President Cevdet Yilmaz emphasized the significant contribution of increased reserves and rising foreign capital inflows to the determined deflation process the country is committed to establishing.
“We will continue to witness the effects of our steadfastly implemented program both in the real sector and financial markets,” Yilmaz stated.
Yilmaz, through his social media account, reported that capital inflows to the country continue to increase, alongside foreign investors’ confidence in the programs.
As a result, he highlighted that the CDS risk premium, which exceeded 700 points before last year’s elections, continues to decline, reaching its lowest level in four years at 270 points.
Yilmaz also noted that with the record-level purchases of Turkish bonds by foreign investors during the week of May 10th, the net inflow of foreign exchange to the country through stock and bond markets reached approximately $6.4 billion between March 22nd and May 10th, 2024.
Economy program yielding visible effects across the real sector and financial market
Yilmaz underscored that with the increase in capital inflows, reserves continue to strengthen, stating:
“The increase in gross reserves of the CBRT reached $7.5 billion in the week of May 10th compared to the previous week, marking the highest weekly reserve increase in the past 3 years. Thus, since the local election process of March 31st, there has been a $42 billion increase in our net reserves excluding swaps, as a result of the Central Bank’s forex purchases and forex-generating transactions.
The increase in our reserves and rising foreign capital inflows will make a significant contribution to the deflation process we are determined to establish. We will continue to see the effects of our program steadfastly applied both in the real sector and financial markets.”
Source: Newsroom
