Bank Of Turkey Says Foreign Currency Reserves Tumble Some $8Bln In One Week

The Bank of Turkey's foreign currency and gold reserves have tumbled almost $8 billion to $60.8 billion in one week, the bank's data showed on Thursday

ISTANBUL (UrduPoint News / Sputnik - 19th May, 2023) The Bank of Turkey's foreign currency and gold reserves have tumbled almost $8 billion to $60.8 billion in one week, the bank's data showed on Thursday.

The bank's reserves were $68.4 billion as of May 5, the data showed.

As of May 12, reserves had fallen by nearly $8 billion to $60.8 billion, approaching the summer of 2022 figures.

Inflation in Turkey in April was 43.68% year-on-year, down from 50.5% compared to the previous month, according to the Turkish Statistical Institute (Turkstat). At the same time, the independent Inflation Research Group (ENAG) claimed inflation in Turkey in April was 105.19%. The Bank of Turkey forecast inflation in the country would be 22.3% by the end of the year.

According to the Turkish government, the economic damage from February's earthquakes exceeded $105 billion.

The Turkish lira was trading at 19.56 against the US dollar, with currency exchanges in Istanbul buying dollars at a rate above 20 lire per US dollar and selling from 21 lire and above. A year ago, the exchange rate was 16-16.

5 lire per US dollar.

Turkish broadcaster NTV reported on Thursday, citing regulators, that the Bank of Turkey has imposed restrictions on cash withdrawal from credit cards to stop the withdrawal of funds. At the same time, other local media reported that Turkish banks have completely banned cash withdrawals from credit cards because of a 1.36% increase in demand for cash.

The ban concerns those who withdraw more than 15 thousand lire ($750) from their credit cards, NTV reported. Withdrawal of funds from credit cards was the most popular method of obtaining cash among the population before the May 14 elections.

If a credit card with a limit of more than 50 thousand lire is used to buy gold or jewelry, then banks must purchase government bonds worth 30% of such transactions. Banks will also have to buy government bonds in the amount of 30% of the withdrawn cash from credit cards, the report said.

Turkish newspaper Sabah reported that if credit card lending growth exceeds 3% over the period, banks will have to buy government bonds to cover the difference with the ceiling.