Türkiye's int'l reserves move to positive side

ISTANBUL

The Central Bank of the Republic of Türkiye's international net reserves - excluding swaps - moved to the positive side by reaching $1.5 billion last week on Friday.

It was at minus $65 billion on March 29, and posted an increase of $66.5 billion over nearly the next two-month period, according to data compiled by Anadolu.

Gross reserves increased from $123.1 billion to $143.6 billion during the same period.

The significant positive impact of the anti-inflation program initiated by the economic administration, which took office after the presidential election last year, is noteworthy in the rise of international net reserves.

Significant improvements continue to be observed in many areas, ranging from Central Bank reserves to credit risk premiums, international investors' demand for bonds, and Türkiye's credit rating.

International credit rating agencies Fitch Ratings and Standard & Poor's upgraded the country's credit rating from “B” to “B+,” while another credit rating agency Moody's, which is expected to evaluate Türkiye in July, is also expected to raise it.

While the improvement in Türkiye's credit risk premium also played an important role in these developments, the country's 5-year credit risk premium declined by approximately 450 basis points in the last one-year period to 261 basis points, the lowest level in the last four years.

*Writing by Gokhan Ergocun