According to the weekly data of the Central Bank of the Republic of Turkey, total foreign currency deposits increased by 919 million dollars in the week of March 11, adjusted for the parity effect. Compared to the previous week, foreign currency deposits of real persons decreased by 895 million dollars, while foreign currency deposits of legal entities increased by 1 billion 814 million dollars.

Currency-protected deposits, which is one of the important data in terms of CBRT reserves, were recorded as 561.9 billion TRY as of last week. In the previous week, 539.2 billion TRY had accumulated in this instrument.

We think that factors such as the continued trend of regular portfolio outflows and the lack of new foreign currency inflows into Turkish assets threaten the stability of the exchange rate, especially in the context of increased geopolitical risk. While the dollar experienced the first weekly decline of this month in the shadow of the Ukraine-Russia war, the Turkish lira continues to decline among the currencies of developing countries after the Central Bank's interest rate decision yesterday. While the first maturity cycles are approaching in FX-linked deposits, the periodic return in foreign currency has been 9.2% since the first accounts were opened.

At the current level, we will continue to monitor the trends in the FX-linked deposit product, which is centered on dollarization and financial stabilization. In this context, we would like to state that we have not yet received a signal of a return to orthodox policy from the Central Bank and the economy management. The financial dollarization rate is at the level of 57.07% as of the week of March 11, we see a slight increase from the rate that was 56.77% in the previous week. This rate was at the level of 54.1% in the same period of the previous year.

Kaynak: Tera Yatırım
Hibya Haber Ajansı