Dollar Deposits in Turkey Drop by $1.5 Billion as Individual Holdings Shrink Sharply

According to the latest figures released by the Central Bank of the Republic of Turkey (CBRT), foreign currency deposits held by domestic residents fell by $1.52 billion in the week ending May 16, 2025.

Total FX deposits, which stood at $193.13 billion the previous week, dropped to $191.31 billion. The bulk of the decrease came from individual account holders.

Households Lead the Decline

Personal FX deposits saw a sharp decline of $2.02 billion, bringing the total to $116.75 billion. In contrast, corporate deposits increased by $505.4 million, reaching $74.85 billion.

This divergence suggests that individuals may be responding more sensitively to monetary policy signals or inflation expectations, while corporates maintain a relatively stable demand for foreign currency.

Adjusted Figures Show a Different Story

When adjusted for parity effects, total FX deposits actually increased by $864.68 million. Within this correction, individuals still saw a drop of $86.59 million, while corporate accounts surged by $951.27 million.

These figures hint at ongoing dollarization pressures, albeit at a slowing pace, and a potential shift in currency preferences within Turkey’s financial landscape.

The decline in real (parity-adjusted) household FX holdings could also indicate increasing confidence in the Turkish lira amid the CBRT’s ongoing interest rate policy and a more stable political outlook following recent uncertainty.