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)
-2,989 -151
19-05-2023
45,455 2,325
12-05-2023
131,982 6,781
05-05-2023
123,478 6,361
28-04-2023
160,742 8,294
21-04-2023
232,594 12,047
14-04-2023
264,885 13,770
07-04-2023
353,626 18,470
31-03-2023
360,025 18,926
24-03-2023
379,267 19,987
17-03-2023
353,057 18,618
10-03-2023
390,262 20,685
03-03-2023
380,790 20,196
24-02-2023
402,962 21,398
17-02-2023
459,698 24,438
10-02-2023
509,094 27,090
03-02-2023
484,844 25,810
27-01-2023
501,579 26,716
20-01-2023
466,890 24,886
13-01-2023
455,489 24,307
06-01-2023
514,984 27,544
30-12-2022
497,410 26,668
23-12-2022
523,937 28,130
16-12-2022
498,206 26,756
09-12-2022
430,273 23,118
02-12-2022
362,915 19,507
25-11-2022
348,590 18,746
18-11-2022
338,707 18,230 11-11-2022
270,255 14,532
04-11-2022
249,925 13,446
28-10-2022 214,663 11,560 21-10-2022
261,478 14,084 14-10-2022
230,886 12,441
07-10-2022
179,900 9,722
30-09-2022
177,303 9,667 23-09-2022
220,557 12,090
16-09-2022
256,621 14,085 09-09-2022 256,040 14,083
02-09-2022
228,983 12,618
26-08-2022
249,442 13,882
19-08-2022
281,262 15,682
12-08-2022
211,824 11,811
05-08-2022
163,261 9,118
29-07-2022 118,105 6,700
22-07-2022
110,970 6,356
15-07-2022
104,818 6,073
08-07-2022
125,185 7,514
01-07-2022
130,637 7,531
24-06-2022
127,601 7,381
17-06-2022
140,203 8,152
10-06-2022
172,885 10,517
03-06-2022
199,511 12,189
27-05-2022
152,223 9,561
20-05-2022
176,994 11,529
13-05-2022
222,391 14,995
06-05-2022
251,397 17,010
29-04-2022
251,640 17,165
22-04-2022
279,135 19,128
15-04-2022
269,590 18,303
08-04-2022
01-04-2022 240,065 16,401
25-03-2022 236,508 15,955
18-03-2022 252,309 17,199
233,847 15,861
11-03-2022
256,101 18,148
04-03-2022
258,873 18,119
25-02-2022
269,383 19,802
18-02-2022
214,035 15,817
11-02-2022
221,360 16,331
04-02-2022
143,166 10,532
28-01-2022
124,610 9,269
21-01-2022
102,192 7,547
14-01-2022
108,359 7,947
07-01-2022
108,219 8,339
31-12-2021
118,321 15,530
25-12-2020
243,910 41,130
27-12-2019
159,352 30,130
28-12-2018
Note: The figures are released every week on the central bank balance sheet as per a letter of intent with the International Monetary Fund dated 18 January 2002. The figures are released in Turkish liras and are converted by Reuters to U.S. dollars using the central bank’s official exchange rate from the previous work day.
