Simsek says increase in Turkish reserves driven by exchange-rate protected deposits

Turkish Finance Minister Mehmet Simsek announced that the country's reserves had experienced a significant increase of up to $17.1 billion in the past two months. Minister Simsek also highlighted that the continuation of reserve increases in August, a month marked by record levels of exchange-rate protected deposits, holds substantial significance. He affirmed that they would continue accumulating reserves to the extent that market conditions allowed.

In a statement posted on his social media account, Simsek commented on the Central Bank's reserve augmentation. According to Central Bank data, the gross reserves, which stood at $98.5 billion by the end of May 2023, had escalated to $115.6 billion in the week ending August 4th. He elaborated:

"Thus, there has been an increase of up to $17.1 billion in reserves over the past two months. Net reserves during this period also witnessed a rise of $20.1 billion, reaching a level of $15.7 billion. The continuation of reserve increments in August, a month of record levels of exchange-rate protected deposits, is highly meaningful. We will continue to accumulate reserves as long as market conditions permit."

According to data from the Turkish Central Bank, total reserves increased from $113.774 billion to $115.591 billion in the week ending August 4th, marking a $1.817 billion rise compared to the previous week.

The upward trend in reserves extended to the eighth consecutive week, with reserves experiencing an increase of $17.1 billion in the past two months.

During this period, net reserves also saw a surge of $20.1 billion, reaching a level of $15.7 billion.