Page 31 - TURKRptAug20

benefiting from a near honeymoon in relations with the West, to the period since when relations with the West have been on a trend towards deterioration.
5.1.4​ Gross intl reserves
USDmn
2019-12
2020-01
2020-02
2020-03
2020-04
2020-05
2020-06
Jul 17
I A Official reserve assets
105,696
102,467
107,724
92,145
86,343
90,914
86,345
89,459
I A.1 FX reserves (in convertible foreign currencies)
77,118
73,463
75,837
59,243
50,070
52,758
45,774
49,230
I A.1.a Securities
33,847
38,121
39,355
36,720
23,870
17,516
16,300
I A.1.b Total currency and deposits
43,271
35,342
36,482
22,523
26,200
35,242
29,474
I A.4 Gold (including deposits and swaps)
27,087
27,520
30,411
31,408
34,786
36,667
39,068
40,229
I A.4.i Volume in millions of fine troy ounces
18
17
18
19
20
21
22
II. Predetermined short-term net drains on FX assets
-34,438
-36,888
-45,071
-53,282
-60,026
-77,521
-80,116
II 1 Foreign currency loans, securities, and deposits
-16,032
-17,053
-18,147
-22,397
-22,253
-22,213
-21,243
II 2. Open FX swap stock
-18,163
-19,009
-25,859
-29,631
-35,536
-51,884
-54,401
II.2.a Short positions ( - )
-18,163
-19,009
-25,859
-29,631
-35,536
-51,884
-54,401
II.2.a.i Up to 1 month
-9,067
-9,947
-18,809
-14,996
-16,105
-18,929
-13,323
II.2.a.ii More than 1 and up to 3 months
-2,000
-2,000
-1,000
-3,875
-7,670
-11,170
-18,000
II.2.a.iii More than 3 months and up to 1 year
-7,096
-7,062
-6,050
-10,760
-11,761
-21,785
-23,078
II 3 Open gold swap stock
-243
-826
-1,065
-1,254
-2,237
-3,424
-4,472
II 3.e gold payable (-)
-1,593
-1,958
-2,247
-2,446
-3,797
-4,509
-5,664
II 3.f gold receivable (+)
1,350
1,132
1,182
1,192
1,560
1,085
1,192
III 1 Contingent liabilities in foreign currency
-34,648
-35,905
-36,739
-32,656
-30,224
-27,642
-27,915
III.1.a Collateral guarantees on debt due in 1-year
-1,958
-1,934
-1,940
-3,052
-3,026
-3,082
-3,146
III.1.b Banks’ reserve requirements
-32,690
-33,971
-34,799
-29,604
-27,198
-24,560
-24,769
On July 17, the central bank ​tapped​ $1bn from local lenders in a 3-month swap.
On July 28, banking watchdog BDDK changed local lenders’ swap limits with foreign counterparts.
Accordingly, those international development banks—for instance, the European Bank of Reconstruction and Development and the World Bank Group’s International Finance Corporation, or IFC—that open a lira account with domestic banks will be allowed to conduct swap transactions that involve buying lira with the Development Investment Bank of Turkey (TKYB) and in the FX swap market at Borsa Istanbul.
The international development banks will also be allowed to conduct repo and reverse repo transactions at Borsa Istanbul, and lira depo transactions with domestic banks.
On May 6, the BDDK cut local lenders’ swap limits with foreign counterparts to 0.5% of their equity, meaning, de facto, no swaps. Aiming to limit lira leakage to the London offshore market, it had on April 13 already squeezed the limit to 1% from the previous 10%.
On May 20, the BDDK exempted Euroclear Bank and Clearstream Banking from limitations imposed on Turkish banks in their lira transactions with foreign
31​ TURKEY Country Report​ August 2020 ​ ​www.intellinews.com