UPDATE-Turkish Central Bank reserves hit $90.9B in May

UPDATES WITH MORE DETAILS, REVISES HEADLINE

By Gokhan Ergocun

ISTANBUL (AA) - The Turkish Central Bank on Wednesday announced its official reserves totaled $90.9 billion as of the end of May.

Total reserve assets soared 5.3% this May, versus $86.3 billion in April, the bank's international reserves and foreign currency liquidity report showed.

Foreign currency reserves – in convertible foreign currencies – totaled some $52.8 billion, up 5.4% on a monthly basis.

In May, the bank's gold reserves – including gold deposits and, if appropriate, gold swapped – also rose 5.4% over the previous month to $36.7 billion.

Meanwhile, the bank’s official reserves fell slightly 1.3% year-on-year, down from $95.6 billion at the end of May 2019.

In December 2013, its total reserves hit their all-time peak at nearly $136 billion, including some $21 billion in gold reserves.

- Liability side

Short-term predetermined net drains of the central government and the Central Bank -- foreign currency loans, securities, and foreign exchange deposit accounts of residents abroad within the bank -- dropped 0.2% in May, staying at $22.2 billion, according to the report.

It said $17.2 billion of this amount was principal repayments and $5 billion was interest repayments.

The contingent short-term net drains on foreign currency totaled $27.6 billion in May, going down 8.5% from the previous 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.