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Turkey cenbank’s net forex reserves negative for first time since 2002 By Reuters

Turkey cenbank's net forex reserves negative for first time since 2002

© 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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