Central Bank of Türkiye Resumes Net FX Purchases After $57 Billion in Sales
CBRT
After seven consecutive weeks of heavy foreign exchange (FX) interventions, the Central Bank of the Republic of Türkiye (TCMB) has resumed net FX purchases, signaling a strategic pivot in monetary operations. The update was publicly shared by Prof. Dr. Hakan Kara, former Chief Economist of the TCMB and current faculty member at Bilkent University.
Prof. Hakan Kara Shares Insightful Graph Showing Policy Turnaround
Using the social media platform X, Prof. Kara published a graph charting the TCMB’s weekly net FX transactions between January and May 2025. The data illustrates that the central bank sold approximately $57 billion in reserves during March and April, before shifting course in early May, when net FX buying resumed.
“After seven weeks of intense FX sales totaling $57 billion, the Central Bank has started net buying again as of last week,” Kara wrote alongside the graphic.
The final column in the graph, representing the most recent data point, clearly shows a positive value, indicating that the bank has re-entered an FX accumulation phase—a move that could have implications for monetary tightening, lira stability, and reserve rebuilding.
What This Means for Türkiye’s Economic Outlook
The return to FX purchases suggests the TCMB may now be more comfortable with current market conditions, possibly due to improved capital inflows, lower exchange rate pressure, or an effort to rebuild depleted reserves. Analysts view this development as a potential sign of greater monetary policy confidence or a temporary shift based on short-term liquidity dynamics.
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