CBRT/Bloomberg

Economy

Turkey to end silence over $20 billion mystery with reserves

  • share this article

An expected increase of as much as $20 billion in net reserves cannot be seen in official accounts for this year through 29 March.

Sunday 28, April 2019

(Bloomberg) --The Turkish central bank is due to shed light on billions of dollars of foreign-currency holdings that analysts have been struggling to keep track of this year.

Responding to questions over the discrepancy, a Turkish official said the central bank will provide an explanation at a quarterly inflation briefing on 30 April.

The clarification will be the central bank’s first attempt to publicly address what appears to be a glaring hole in the nation’s finances that has shaken investor confidence and confounded economists. For over a month, Turkey watchers have been struggling to square the official data with regular inflows and outflows that together make up the changes in the central bank’s accounts.

The market first detected the anomaly when a sharp drop in reserves in early March could not be explained by external debt payments and sales to energy importers alone, prompting JPMorgan Chase to recommend investors to sell the lira.

In an attempt to shore up its buffers, the central bank began borrowing large amounts of dollars from local lenders through short-term swap transactions.

 

TAGS : CBRT , JP Morgan Chase & Co, Lira, President Recep Tayyip Erdogan

print this article