Turkish central bank’s net forex reserves fall to 20-year low, data shows

The Turkish central bank’s net foreign currency reserves fell to a 20-year low of around $7 billion last week, according to calculations by four economists based on preliminary data.

“The economy’s foreign currency needs continue. Preliminary indicators show the central bank’s FX reserves will fall by around $1 billion towards $7 billion. This will be the worst level in 20 years,” a forex trader at one bank told Reuters.

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The central bank’s net international reserves fell some $2.37 billion to $8.15 billion in the week to June 10, official data showed last week.

The central bank will announce the latest official reserves data on June 23.

Forex reserves have dropped sharply in recent years, most recently due to the billions of dollars the bank sold in market interventions to stem a currency crisis in December and address what it called “unhealthy” prices. The reserves touched a record low of $7.55 billion in January.

Read more: Rising risk of more capital controls in Turkey: S&P Global