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The Central Bank of the Republic of Türkiye's (CBRT) reserves shed nearly $8 billion to $149.2 billion in the week ending June 26, even as foreign investors continued buying Turkish equities and debt securities, according to the latest official data.
Gross foreign exchange reserves dropped by $5.3 billion to $54.3 billion, while gold reserves dropped by $2.7 billion to $95 billion from $97.7 billion. Net foreign exchange reserves also declined, losing $6.6 billion to $45.3 billion. Net reserves excluding swaps slid by $3.9 billion to $30.7 billion during the week.
Overseas investors continued buying Turkish financial assets during the week, purchasing $203.3 million worth of equities, $448.3 million in government domestic debt securities and $492.1 million in securities issued by sectors outside the general government.
Those purchases brought total foreign inflows into Turkish equities to $1.5 billion since the start of the year, while cumulative flows into government debt instruments remained negative at $773 million.
Local brokerage Colendi Menkul Kiymetler said the continued foreign inflows reflect expectations that June inflation slowed to around 1% and that the CBRT could begin easing funding conditions after its July meeting, supporting demand for Turkish lira assets, particularly government bonds.
Even with the latest inflows, the market value of foreign investors' equity holdings declined to $41.4 billion from $42.9 billion, while their holdings of government domestic debt securities increased to $15.6 billion from $15.1 billion. Holdings of private sector securities also rose to $2.1 billion from $1.6 billion.
Total deposits in Türkiye's banking sector increased 1% during the week, rising by ₺334 billion ($7.2 billion) to ₺31.6 trillion.
Foreign currency deposits across the banking system stood at $258.9 billion, with domestic residents holding $218.4 billion of the total, while their foreign currency deposits declined by $1.1 billion as of June 26.
Meanwhile, consumer loans to domestic residents rose 1.6% to ₺6.6 trillion during the week.
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