According to the weekly data of the Central Bank of the Republic of Turkey, total foreign currency deposits increased by 830 million dollars in the week of March 18, adjusted for the parity effect. Compared to the previous week, foreign currency deposits of real persons decreased by 314 million dollars, while foreign currency deposits of legal entities increased by 1 billion 144 million dollars.

 

Currency-protected deposits, which are also an important indicator in terms of reserves, exceeded TRY 581 billion. According to the statement made by the Ministry of Treasury and Finance, the size of the protected deposits converted into foreign currency was 321 billion TRY. According to the calculation made according to the CBRT rates, approximately 23.2 billion dollars of reserves entered through this channel. However, the CBRT's gross reserves, which were 111.1 billion dollars on 31 December, reached 108.7 billion dollars as of the week of 18 March.

 

Looking at the foreign exchange deposits, it was seen that the increase momentum continued. In the week of March 18, foreign currency deposits of domestic residents increased by 143 million dollars to 216.2 billion dollars.

 

With the geopolitical risks posed by the Russia-Ukraine war, there is a more timid approach to Turkish lira-denominated assets. From this point of view, since the end of December, After the announcement of the currency protected deposit product launched by President Mr. Recep Tayyip Erdoğan, the appreciation in TRY with account openings, then the stabilization gave way to depreciation again. While the conversion of legal entities from foreign currency has accelerated since the beginning of the year, it is observed that the acceleration of FX-linked deposit has decreased especially in the last two weeks.

 

Although FX-linked deposit breakdowns are not given in the announced BRSA figures, the Treasury announced a size of 591 billion TRY during the week. It has been stated that 270 billion TRY of this is in Treasury-supported FX-linked deposit (direct TRY account opening), and 321 billion TRY in CBRT-supported (foreign exchange/gold conversion) products. At the current level, we will continue to monitor the trends in the FX-linked 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 56.61% as of the week of March 18, we see a slight increase from the rate that was 57.07% in the previous week. This rate was at the level of 54.7% in the same period of the previous year.

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Hibya Haber Ajansı