Turkish Residents’ FX Deposits Rise by $1.43 Billion in One Week
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Despite recent interest rate hikes and market volatility, foreign exchange (FX) deposits held by residents in Türkiye rose by $1.43 billion in the week ending April 11, reaching $191.23 billion, according to data released by the Central Bank of the Republic of Türkiye (CBRT).
The data revealed a sharp divergence between individuals and institutions:
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Individual FX deposits increased by $2.73 billion, reaching $117.94 billion.
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Corporate FX deposits, on the other hand, fell by $1.29 billion to $73.29 billion.
Adjusted for Parity: Net Outflow
When adjusted for parity effects (exchange rate fluctuations), the total decline in FX deposits was $2.44 billion.
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Real persons’ FX accounts showed a modest increase of $19 million.
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Legal entities saw a sharp drop of $2.46 billion, indicating intensified corporate conversion to Turkish lira or alternative assets.
Historical Trend: 2025 Sees Consistent Climb
Looking at year-to-date trends, residents’ FX holdings have climbed steadily from $163.2 billion on January 3 to over $191 billion by mid-April, reflecting growing demand for dollar-based assets amid economic and political uncertainty.
The increase has been more pronounced among individuals, likely fueled by inflationary expectations, concerns over political instability, and recent exchange rate fluctuations.
Expert Insight: “Individual Demand Rising, Corporates Retreating”
Analysts interpret the discrepancy between retail and corporate behaviors as a reflection of:
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Wealth preservation strategies by individuals against rising inflation.
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Corporate balance sheet adjustments in favor of TRY-based assets amid regulatory pressures.
Central Bank Outlook
The Central Bank continues to monitor FX developments closely amid:
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Political uncertainty following the detention of opposition leader Ekrem İmamoğlu,
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Increased demand for hard currency,
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Tight monetary policy including the recent surprise rate hike to 46%.