Turkish Central Bank Reserves Drop to $180.6 Billion

Turkey’s official reserve assets fell noticeably last week, with the Central Bank of the Republic of Turkey (TCMB) reporting a 3.6% decline, bringing total reserves down to 180.6 billion dollars. The latest figures indicate decreases across all major categories—foreign currency reserves, gold holdings, and SDR/IMF positions—reflecting a softening in overall reserve strength compared with the previous week.

The TCMB published the data along with a technical explanation detailing the weekly movements in each reserve component. Markets closely follow these statistics, as they provide insight into Turkey’s short-term external liquidity, foreign exchange management strategy and financial resilience.

Official Statement Highlights Reserve Movements

In its announcement, the Central Bank summarized the week’s developments as follows (translated):
“Official reserve assets decreased by 3.6% compared with the previous week, reaching 180.6 billion US dollars. This week, foreign currency assets fell by 5.2% to 68.6 billion dollars, gold reserve assets decreased by 2.8% to 104.4 billion dollars, and the combined IMF reserve position and SDR holdings declined by 0.4% to 7.6 billion dollars.”

The sharpest contraction occurred in foreign currency reserves, which fell by more than 5% every week. Gold reserves, which have played a significant role in Turkey’s recent reserve build-up, also experienced a moderate decline.

Short-Term FX Liabilities Also Decline

The TCMB report also examined the foreign currency liabilities that impact the short-term liquidity position of the public sector—covering both the Central Bank and central government. These liabilities decreased by 1.1% from the previous week, totaling 118.7 billion dollars.

The Bank further detailed the breakdown of these obligations:

• Pre-determined foreign currency liabilities fell 0.8% to 56.5 billion dollars.

• Contingent foreign currency liabilities decreased 1.3% to 62.2 billion dollars.

Such declines suggest a slight easing in short-term repayment pressures, although liability levels remain sizable relative to reserve buffers.

Swap Liabilities Stand at $17.6 Billion

Turkey’s use of foreign exchange swap transactions—agreements with domestic and international counterparties that temporarily boost balance-sheet reserves—remains an essential component of the overall reserve structure. According to the weekly report, the Central Bank’s swap-related foreign currency obligations currently stand at 17.6 billion dollars.

While swap lines provide short-term liquidity support, they also entail future obligations, requiring the Central Bank to repay these positions upon maturity. This is why analysts often monitor swaps separately to assess the underlying quality of gross reserves.

What the Reserve Decline Suggests for Markets

The latest data points to a temporary softening in Turkey’s reserve position after months of strengthening. Foreign inflows drove earlier improvements, reduced foreign exchange demand, rising gold holdings, and a stabilization of the domestic financial environment. The current decline, however, reminds markets that reserve levels can fluctuate weekly due to:

• global gold price movements

• changes in foreign currency demand

• foreign debt repayments

• swap rollovers or settlements

• central bank interventions

• valuation effects from exchange rate shifts

Despite the weekly contraction, Turkey continues to maintain one of the highest total reserve levels in its history, supported by gold-based accumulation and ongoing swap lines.