After the BRSA decision last Friday, which aims to stop the depreciation of the Turkish lira and reduce lending, intense currency sales have been carried out by the central bank and public banks.
According to information gathered by Şebnem Turhan of the Dünya Newspaper from bBanking sources, sales of foreign currencies that began on Friday with the announcement of the decision and which sought to meet individual and corporate demand this week reached $ 2-3 billion. .
The Central Bank yesterday announced international net reserve data for the week ending June 24 in its money and banking statistics. Net international reserves, defined by the IMF, fell to the lowest level of the last 20 years with 7.7 billion dollars in the week of June 17, and continued to remain at the lowest levels of the last 20 years with 7.5 billion dollars. in the week of June 24th.
Analysts expect the loss of net international reserves to continue due to foreign exchange sales this week.
According to weekly data from the BRSA, deposits protected by the currency rose to 1 trillion lire in the week ending June 24. The total volume of loans increased by Lire 40.7 billion to Lire 6.3 trillion last week. Last week, total deposits in the banking sector (including the interbank sector) increased by 26 billion and 847 million lire.
Will the 40 percent limit be raised to 50 percent?
The Central Bank is trying to bolster its reserves with the KKM, redeem credits, sell 40 percent of export earnings to the Central Bank and trade agreements between countries. However, with foreign exchange intervention sales and currency sales to SOEs, especially BOTAŞ, reserves are dwindling. Bank sources said the BRSA’s FX activity limit for this latest TL loan was adopted at the request of the Central Bank. It was pointed out that the next step for the Central Bank, which plans to sell foreign currency with this step, could be the obligation to sell 50 percent of its export earnings to the Central Bank, not 40 percent.
When selling foreign TL securities, the mind of the venue is in foreign currency
The outflow of foreign investors from TL stocks also continued last week. According to the Central Bank’s weekly securities statistics, foreign investors sold $ 98.4 million worth of shares and $ 57.7 million of national government debt in the week of June 24.
Foreign investors have come out nonstop for the past 3 weeks in equities and 10 weeks in DIBS. In the week ending June 24, since the beginning of the year, its total production reached $ 5.0 billion, including $ 3.3 billion in stocks and $ 1.7 billion in government bonds.
While foreign investors made sales and exited, they also increased the foreign currency deposits of domestic residents.
According to the Central Bank’s weekly money and banking statistics Adjusted for the parity effect, foreign currency deposits increased by $ 769 million in one week. Domestic residents’ foreign currency deposits increased both individually and company-wide in the week ending June 24.
While individuals ‘foreign currency deposits increased by $ 78 million adjusted for parity, corporations’ foreign currency deposits increased by $ 691 million prior to the BRSA’s new move.