© Reuters. A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara, Turkey November 11, 2021. REUTERS/Cagla Gurdogan
ANKARA (Reuters) – The Turkish central bank’s net forex reserves dropped into negative territory for the first time since 2002, standing at $-151.3 million on May 19, official data showed on Thursday, as it sought to counter forex demand ahead of Sunday’s runoff vote.
President Tayyip Erdogan led rival Kemal Kilicdaroglu comfortably in the presidential vote on May 14 but he fell just shy of the 50% needed to win outright. The outcome will be decided in a May 28 runoff.
Forex demand in Turkey surged to record levels ahead of May 14 on companies’ and individuals’ expectations that the lira, which lost 44% in 2021 and 30% in 2022, will plunge after the vote.
The central bank’s forex reserves have sagged in recent years due to costly market interventions and other efforts to cool forex demand.
The bank’s net reserves dropped by $2.48 billion in the week to May 19, to their lowest level since February 2002. They have dropped $27.7 billion since the end of 2022.
The exchange rate used by Reuters on Thursday was 19.7607. The net forex reserves are pushed deeper into negative territory once outstanding swaps, which stood at $33.50 billion on Wednesday, are deducted.
In the first five weeks of 2002, net reserves were in negative territory, according to official data that goes back to the beginning of that year.
Date Net international Net international
reserves(mln lira) reserves (mln USD)
19-05-2023 -2,989 -151
12-05-2023 45,455 2,325
05-05-2023 131,982 6,781
28-04-2023 123,478 6,361
21-04-2023 160,742 8,294
14-04-2023 232,594 12,047
07-04-2023 264,885 13,770
31-03-2023 353,626 18,470
24-03-2023 360,025 18,926
17-03-2023 379,267 19,987
10-03-2023 353,057 18,618
03-03-2023 390,262 20,685
24-02-2023 380,790 20,196
17-02-2023 402,962 21,398
10-02-2023 459,698 24,438
03-02-2023 509,094 27,090
27-01-2023 484,844 25,810
20-01-2023 501,579 26,716
13-01-2023 466,890 24,886
06-01-2023 455,489 24,307
30-12-2022 514,984 27,544
23-12-2022 497,410 26,668
16-12-2022 523,937 28,130
09-12-2022 498,206 26,756
430,273 23,118
02-12-2022
25-11-2022 362,915 19,507
18-11-2022 348,590 18,746
11-11-2022 338,707 18,230
04-11-2022 270,255 14,532
28-10-2022 249,925 13,446
21-10-2022 214,663 11,560
14-10-2022 261,478 14,084
07-10-2022 230,886 12,441
30-09-2022 179,900 9,722
23-09-2022 177,303 9,667
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