Turkish Central Bank reserves down to $105.9B in March

By Aysu Bicer

ANKARA (AA) - The Turkish Central Bank’s reserves fell to $105.9 billion in March, a 4.1% drop from the previous month, according to official data released Thursday.

The bank's foreign currency reserves – in convertible foreign currencies – decreased 7.9% to $56.1 billion, while its gold reserves – including gold deposits and, if appropriate, gold swapped – rose 0.7% to $42 billion last month, the latest data showed.

Short-term predetermined net drains on the central government and Central Bank – foreign currency loans, securities, and foreign exchange deposit accounts of residents abroad within the bank – slipped 4.5% month-on-month to $21.1 billion.

"Additionally, outstanding FX and gold liabilities arising from the (bank's) financial derivative activities with resident and non-resident banks recorded $62.1 billion, of which $21.5 billion is due in one month," it said.

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 letters of credit items on the Central Bank's balance sheet.