The total reserves of Turkey’s central bank rose to a record high of $159.6 billion as of November 1, marking an increase of $221 million compared with the previous week, according to recent official data.
The Central Bank of Turkey (CBRT) weekly report on monetary and banking statistics indicates that the bank’s gross foreign exchange reserves declined by $499 million within the same period, falling from $93.504 to $93.005 billion. However, gold reserves saw a notable rise, increasing by $720 million to $66.6 billion from $65.8 billion.
The data indicate that the overall reserves have surged to the highest level in the bank’s history. The central bank is now rebuilding its currency stockpile thanks to massive capital inflows flooding into Turkey this year following a shift toward more conventional economic policies, according to a July report by Bloomberg.
Turkey has been battling a cost-of-living crisis that prompted President Recep Tayyip Erdoğan to drop his opposition to interest rate hikes to combat inflation. The central bank began to raise its key rate in June 2023, gradually taking it from 8.5 percent to 50 percent.
In an effort to boost reserves, the central bank has amassed some $20 billion in deposits and currency swap agreements that include deals with China, Qatar, South Korea and the United Arab Emirates.
The central bank has not specified which deposits have been returned.