Sharp decline in TCMB reserves: Foreign currency reserves decreased by nearly 10% week-on-week.

The Central Bank of the Republic of Turkey (CBRT) recorded a significant decline in its official reserve assets during the week of March 17-21. According to the latest International Reserves and Foreign Currency Liquidity report published by the CBRT, official reserve assets decreased by 4.7% compared to the previous week, falling to $163.1 billion. This decline was primarily driven by a drop in foreign currency reserves, which decreased by 9.8% to $80.8 billion. Conversely, gold reserves saw a 1% increase, reaching $74.8 billion, while the total IMF reserve position and SDR fell by 0.03% to $7.5 billion.

Short-term foreign currency liabilities of the public sector (CBRT and Central Administration) experienced a slight increase of 0.01%, rising to $100.2 billion. Predefined liabilities increased by 1.5% to $49.4 billion, whereas contingent liabilities decreased by 1.4% to $50.8 billion. Detailed analysis shows that foreign currency loans, securities, and deposits decreased by 1.6% to $39.5 billion, while the net open position from foreign currency forward and future transactions increased by 15.1% to $12.2 billion. The net foreign currency liability from total foreign currency swap transactions was reported at $12.2 billion, indicating continued pressure on currency-based positions within the reserve composition, while gold assets maintained their protective role in the reserve structure. The institution's upcoming measures regarding foreign currency position management will be closely monitored.