The Central Bank of the Republic of Turkey (CBRT) continues to decisively implement its reserve-building policy, according to Gov. Murat Çetinkaya, who said the bank aims to reinforce and effectively manage the country's reserves, consistent with a steady rise.
"Although reserves may fluctuate due to periodic factors, there has been a consistent uptrend in reserves in the medium term," Çetinkaya told Anadolu Agency (AA) yesterday.
Gross reserves last week had increased across all items by $4.3 billion and by March 27 reached $96.7 billion, Çetinkaya noted. He said net reserves also rose $2.4 billion to $28.6 billion in the same period.
Early yesterday, the bank reported that its official reserves reached $100.1 billion as of the end of February. Total reserve assets climbed 3.4 percent in February, up from $96.7 billion at the end of January.
Foreign currency reserves amounted to $77.6 billion in convertible foreign currencies, rising 3.7 percent over the same period. Gold reserves surged 2.8 percent to $21 billion including gold deposits and, if appropriate, gold swapped.
On a yearly basis, the bank's official reserves posted a 12.6 percent fall; at the end of February 2018 the amount was $114.5 billion. In December 2013, the bank's total reserves hit an all-time peak of nearly $136 billion, including some $21 billion in gold reserves.
Yesterday's report also said short-term predetermined net drains of the central government and the bank climbed 5.6 percent on a monthly basis, reaching $13.7 billion in February.
"Of this amount, $9.1 billion belongs to principal repayments and $4.6 billion to interest repayments. Regarding the maturity breakdown of the principal and interest payments, $2.7 billion is due in one month, $2.5 billion in 2-3 months, $8.5 billion in 4-12 months," the bank said.
In February, contingent short-term net drains on foreign currency were $31.8 billion, a 4.1 percent decline month-on-month.
According to the bank's definition, the contingent short-term net drains on foreign currency consist of "collateral guarantees on debt due within one year" and "other contingent liabilities," which are the banking sector's required reserves in blocked accounts in foreign currency and gold, and the letters of credit items on the central bank's balance sheet.