While TCMB Reserves Increase, Currency Protection Declines

The Central Bank of the Republic of Turkey (CBRT) has published its economic data for October. According to the released data, the observed increase in net international reserves, changes in reserves in foreign currency and gold, and significant increases in the money supply are noteworthy.

As of October 25, the CBRT reported a $232 million increase in net international reserves, bringing the total to $60.89 billion. The previous week's figure was $60.66 billion. During the same period, a slight increase was also observed in the CBRT's official reserve assets; these assets rose to $159.40 billion, while gold reserves reached $65.89 billion. However, foreign currency assets decreased from $86.25 billion to $85.99 billion.

These reserve movements indicate Turkey's ongoing efforts to strengthen its reserves in international markets. The low level of increase in the CBRT's international reserve position is significant for the country's external financial security. The ongoing growth in gold reserves is regarded as a remarkable trend.

Changes in Money Supply and Deposit Accounts

Significant changes in the money supply were reported as of September. The M1 money supply increased by 37.3% year-on-year, while the M3 money supply grew by 42.3%. The corresponding rates for the previous month were 32.2% and 44.5%, respectively.

These increases suggest that liquidity levels in the country have gained significant momentum throughout the year, and it is observed that the broad money supply is supporting economic activity.

Decline in Currency-Protected Deposit Accounts

At the end of September, a noticeable decline was recorded in currency-protected deposit accounts. The total stock balance of Turkish lira deposits dropped to 2.80 billion TL, while deposit accounts in foreign currency/gold convertible holdings of real persons fell to $35.80 billion.

For legal entities, this figure, recorded at $12.60 billion, reached a total of $48.40 billion, reflecting a decrease compared to the previous month. According to this data, exits from the currency-protected system continue, and trends among both individual and institutional investors have become more pronounced.