Central Bank’s reserves reach new record level

The latest data have shown that the Turkish Central Bank's gross reserves have climbed to a new all-time high.

The bank's gross reserves increased from $136.5 billion on Nov. 24 to $140.2 billion on Dec. 1.

Foreign currency reserves rose from $91 billion to $93.2 billion, while gold reserves climbed from $45.5 billion to $46.9 billion.

With the political uncertainties waned after the May elections and the macroeconomic policy framework for the upcoming period taking a concrete form, reserves are increasing, and economic indicators are improving, commented Vice President Cevdet Yılmaz.

He noted that the bank's gross reserves increased by 42.3 percent within the six-month period.

As the economic policy roadmap became clear with the medium-term program and thanks to the confidence in the markets due to the Central Bank's policies, the FX-protected deposits accounts reserved course, and they are declining, Yılmaz wrote on X, formerly Twitter.

The FX-protected deposits fell to 2.71 trillion liras in the week ending Dec. 1 after reaching a record high of 3.4 trillion in mid-August, Yılmaz said.

"The scheme, which was at the start designed as a temporary regulation, has done its job and is being gradually reduced without harming the stability in financial markets," he said.

Yılmaz also said that the policies aimed at increasing reserves, ensuring budget discipline as well as lowering the current account deficit and inflation are improving the investment environment, noting that the Turkish economy grew 4.6 percent in the first nine months of 2023.