Turkey's international reserves surpass $170 billion, as announced by the Central Bank
Turkey's foreign exchange reserves have experienced a slight decline in the week ending August 1, according to the latest data from the Central Bank of the Republic of Turkey (CBRT). The total reserves stood at around $169 billion, down from $171.85 billion in late July.
Gross foreign exchange reserves also saw a decrease, dropping by $1.72 billion to approximately $84.91 billion. Simultaneously, gold reserves fell by $1.14 billion to roughly $84.08 billion. Net reserves excluding currency swaps also decreased from $46.7 billion to $45.6 billion in this period.
Despite this recent dip, there has been a recovery trend in reserves following the March 2025 volatility linked to political and market instability. By late July, gross FX reserves had climbed back to pre-March levels near $171.9 billion due to a tight monetary policy stance. This represented a recovery after central bank actions, such as hikes in the key policy rate, helped stabilize markets.
Investor sentiment remains cautiously positive towards Turkish assets. Foreigners continued to increase equity holdings for a sixth consecutive week, purchasing $135.5 million worth of equities in the week ending August 1. However, their activity in domestic bonds fluctuated: modest net purchases of $8.8 million in government debt securities and $61.2 million in non-government bonds were observed, although government debt holdings slightly dipped overall.
This suggests that while Turkey’s overall foreign exchange reserves have seen a slight recent decline, investor confidence—particularly from foreigners—has persisted amid ongoing monetary policy adjustments and broader efforts by the CBRT to stabilize the currency and financial markets.
Key figures:
- Foreign exchange reserves: around $169 billion as of early August, down from $171.85 billion late July, with gross FX reserves near $85 billion.
- Investor sentiment: foreign investors continue to buy Turkish equities steadily; bond purchases are smaller but ongoing.
- CBRT's role: tight monetary policy and interest rate hikes have supported stabilization and reserve rebuilding efforts following March 2025 volatility.
These figures are based on the latest available reports from the CBRT and related financial analyses through early August 2025.
Erdogan, the Turkish President, has expressed concerns over the recent dip in Turkey's foreign exchange reserves, which stand at around $169 billion as of early August, following a decline from $171.85 billion in late July. The Turkish government, under Erdogan's leadership, is planning to implement further financial reforms to support the stabilization of the country's currency and attract more foreign investment, as shown by the continued purchase of Turkish equities by foreign investors. The Central Bank of the Republic of Turkey (CBRT), under the direction of the Turkish government, will likely play a key role in these efforts, similar to the actions they took in March 2025 to help stabilize markets and rebuild reserves through tight monetary policy and interest rate hikes.
