Central Bank of Turkey's gross reserves attain new historic high point
The Central Bank of the Republic of Türkiye has announced a significant increase in its total gross reserves, reaching an all-time high of $174.4 billion as of August 8, 2023. This growth is primarily attributed to increases in both foreign currency and gold reserves.
Foreign currency reserves saw a 3.4% rise, reaching $79.9 billion, while gold reserves, including gold deposits and swaps, increased by 3.2% to $86.8 billion. This combined growth raised the total gross reserves by about $5.38 billion or 3.2%, marking a new record since February of this year.
The net reserves, excluding swaps, also experienced a notable improvement. They rose from $45.6 billion to $49.6 billion, indicating stronger liquidity and reserve quality. This represents an increase of approximately 7.7% compared to the previous week's $63.2 billion.
Notably, the net reserves excluding swaps also reached a new record since February of this year in the week of Aug. 8, rising by approximately 13.5% from their previous record in February. This brings the net reserves excluding swaps to $67.6 billion.
The Central Bank's gold reserves also saw an increase of 3.2% to $86.8 billion during the same period.
The bank's effective reserve accumulation policies aim to enhance Turkey’s ability to withstand external economic shocks, stabilize the national currency, and boost investor confidence. The bank has been actively purchasing foreign currency, reversing earlier reserve declines seen earlier in the year, which also contributed to the rise in reserves.
The Central Bank of the Republic of Türkiye released the figures on Thursday, with the reserves reaching this high on Aug. 8. The all-time high in reserves was reported in official figures.
The significant increase in the Central Bank of the Republic of Türkiye's total gross reserves has positively impacted the finance sector, as businesses may find it easier to secure loans due to the improved liquidity.
The Central Bank's effective reserve accumulation policies, aiming to boost investor confidence, could potentially attract more foreign businesses to Türkiye, given the stable financial environment.
