Turkish Residents’ FX Deposits Rise by $1.47 Billion Despite Parity-Adjusted Decline
Dollar Reserves
According to the latest data released by the Central Bank of the Republic of Türkiye (CBRT), foreign exchange (FX) deposits held by domestic residents increased by $1.47 billion in the week ending May 23, 2025.
Total FX Deposits Near $193 Billion
The total volume of FX deposits by Turkish residents rose from $191.61 billion to $193.09 billion. The increase was largely driven by individuals (real persons), whose FX holdings surged by $1.95 billion, reaching $118.7 billion.
In contrast, corporate FX deposits (legal persons) decreased by $467.67 million, falling to $74.39 billion.
Parity-Adjusted Figures Paint a Different Picture
Despite the headline increase, parity-adjusted data—which eliminates the impact of exchange rate fluctuations—shows a different trend. Overall, FX deposits actually decreased by $1.34 billion when adjusted for currency parity.
-
Real persons’ parity-adjusted FX deposits declined by $227.11 million
-
Legal persons’ parity-adjusted deposits saw a sharper drop of $1.11 billion
This indicates that the apparent rise in FX deposits was influenced by favorable exchange rate movements rather than an actual inflow of new foreign currency holdings.
A Sign of Cautious Market Sentiment
The increase in real sector FX holdings amid high inflation and currency uncertainty reflects ongoing concerns over the Turkish lira’s stability. The decline in corporate deposits, however, may point to reallocation into alternative financial instruments or operational liquidity use.
This data is closely watched by economists and investors as it provides insights into dollarization trends, exchange rate pressures, and investment behavior among Türkiye’s households and businesses.
