Page 31 - TURKRptMar22

5.0 External Sector & Trade 5.1 Gross intl reserves
On February 9, banking watchdog BDDK started releasing data on the FX-guaranteed lira deposit scheme (KKM).
By February 14, $14bn had been transferred to the central bank's own-account via the scheme. This helped bring a recovery in the net reserves.
Later on, the BDDK stopped releasing daily data on the FX-guaranteed lira deposit scheme. The regulator now only provides weekly data. Breakdowns on lira deposit conversions and FX deposit conversions are not available.
On March 4, Finance Minister Nurettin Nebati said that overall sum under the figure reached TRY535bn as of March 3, including TRY227bn worth of deposits converted from lira accounts under the guarantee provided by the Treasury and TRY229bn ($16bn) converted from FX accounts under the central bank guarantee.
The sum converted from FX accounts is transferred from banks’ accounts to the central bank’s account, supporting international reserves.
Presently, it is totally unknown how much is flowing into the central bank’s account from exporters while it is not possible to track inflows from the deposit scheme unless the officials irregularly provide data.
The central bank’s net FX position (net reserves minus the Treasury’s FX account at the central bank), by @e507.
The decreed seizure of 25% of export revenues supports the usable reserves while FX shortages work as another tightening cycle.
In addition to the lira fixing activities, the central bank sold a record $5bn to
31 TURKEY Country Report March 2022 www.intellinews.com