2023-06-08 13:53:40
Istanbul, Türkiye
At a time when the authorities are seeking to meet the demand for foreign exchange and stabilize the exchange rate of the lira, the net foreign exchange reserves of the Central Bank of Turkey continued to drop to a new record low in the week ending on the second of June.
On Thursday, data revealed that net foreign exchange reserves fell to -5.7 billion dollars, which is the lowest level ever recorded.
The central bank’s net reserves fell by regarding $1.3 billion last week, to the lowest level recorded since data began being published in 2002.
Net reserves have fallen by more than $33 billion since the end of 2022, and turned negative last month for the first time since the first five weeks of 2002, with foreign exchange demand rising to record highs during the election period.
Foreign exchange reserves at the central bank have declined in the past few years due to costly market interventions to support the lira and other efforts to cool demand for foreign exchange.
Demand for dollars in Turkey rose to record levels last month, with companies and individuals predicting that the lira, which lost 44 percent of its value in 2021 and 30 percent in 2022, will plunge in the wake of the presidential and parliamentary elections.
The Turkish currency has lost regarding 20 percent of its value this year and has fallen further this week, in what traders said was a sign that Ankara was moving from state control to a freely traded currency.
The lira touched a record low, Thursday, once morest the dollar at 23.3965.
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