Current Status of TCMB Reserves and Investments by Foreign Residents
According to the data dated November 8, 2024, the Central Bank of the Republic of Turkey (CBRT) observed fluctuations in its reserves and in the capital market investments of non-residents in Turkey. These data reflect the overall economic situation and the interest of foreign investors in Turkish markets.
Decline in Reserves As of November 8, the CBRT's net international reserves decreased compared to the previous week, dropping to $60.73 billion. Gross foreign exchange reserves also fell by 0.95% week-on-week to $92.121 billion. Gold reserves experienced a decrease of 2.14%, falling to $65.187 billion. The total reserves of the CBRT decreased by 1.45% to $157.308 billion. Official reserve assets were reported at $157.31 billion as of November 8, indicating a decline compared to the previous week.
Money Supply and Foreign Investments As of November 8, the money supply (M3) decreased by 0.10% week-on-week to 18 trillion 435.56 billion Turkish Lira. The non-residents’ stock of Government Domestic Debt Securities (GDDS) in Turkey increased by a net change of $149.6 million. This increase suggests that non-residents continue to have an interest in Turkish government bonds. During the same period, the stock of equities held by non-residents decreased by $163.8 million, reflecting a negative trend after accounting for market price and exchange rate movements.
General Investment Trends The total value of equities and GDDS stocks in the portfolios of investors abroad increased to $47.680.3 million as of November 8, adjusted for market price and exchange rate movements. This figure, which recorded an increase compared to the previous week, continues to indicate foreign investors' interest in Turkish markets. The market value of the stock held by non-residents rose to $30.903.7 million.
Conclusion and Expectations The data released by the CBRT draw attention to the decline in Turkey's reserves and the fluctuations in capital flows from foreign investors. The reductions in foreign exchange and gold reserves are influenced by exchange rates and overall economic conditions, while a differentiation in investment appetite towards Turkish assets from non-residents is observed. These dynamics highlight the risks and potential that Turkey's financial markets pose for international investors. It is crucial to take necessary steps to maintain economic stability and retain the attractiveness of the markets.