Turkish central bank’s swap stock plummets from $64.5B to $144M
A logo of Türkiye's Central Bank (CBRT) is pictured at the entrance of the bank's headquarters in Ankara, Türkiye April 19, 2015. (Reuters Photo)
Treasury and Finance Minister Mehmet Simsek revealed a significant decrease in the Central Bank of the Republic of Türkiye (CBRT) swap stock with domestic banks, plummeting from $64.5 billion at its peak in 2023 to just $144 million. The announcement was made through a statement on Simsek’s official X account.
Key points
- Reduction in risks and financial normalization: “Thanks to our determined implementation of the program, risks are decreasing, and financial markets are continuing to normalize,” Simsek stated.
- Support for the disinflation process: He emphasized that the reduction in swap stock, which strengthens the monetary transmission mechanism, will also contribute significantly to the disinflation process.
This dramatic reduction in the CBRT’s swap stock marks a crucial step in Türkiye’s efforts to stabilize its financial sector and enhance monetary policy effectiveness.
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