Economists estimated that the Central Bank of the Republic of Türkiye (the central store) sold more than $ 50 billion to support the Lira exchange rate as of March 19, when Imamuglu, mayor of the capital, IBB (IBB), detained him.
IMamoglu was detained on March 18, a day after the Istanbul University diploma was canceled, and then was arrested on March 23 regarding the investigation of corruption charges, on the eve of the preliminary elections for the main CHP opposition to nominate a presidential candidate.
At the same time, the standard maximum in foreign currency and the fall in the stock market was observed. The Central Bank sold billions of dollars in the market to maintain the LYRE rate. Government banks also made purchases in the stock market.
“Reserves are insulating against internal and external shocks. Reserves accumulate so that they can be used.”
Analyst Bloomberg Economic Silva Bazika said that from March 19 to April 21, the central bank made interventions in the foreign exchange market worth $ 52.5 billion to support the contract.
Silva Bazika, a former employee of the Central Bank, says this is reflected in a sincere decline in reserves by $ 41.3 billion.
Reserves
Over the past two years, the Central Bank of the Turkish Republic (CBT) has set the accumulation of reserves of one of its main goals. After the unconventional monetary policy that was followed up in the period 2021-2023, the foreign currency reserves that have been greatly reduced began to recover again under the new economic administration that reached power after the 2023 elections.
According to the economists, last month alone, foreign exchange interventions were held in an amount of more than 50 billion US dollars, which led to a rapid decrease in clean and total reserves. On the other hand, officials argue that these interventions are temporary measures to achieve stability in the market.