Is the sale in deposits a signal to switch from foreign currency to TL? By Investing.com


© Reuters.

Investing.com – According to the CBRT’s weekly securities statistics report, foreign investor In the trading week ending February 5, it purchased 141 million dollars of bonds and sold 183 million dollars of shares. Thus, it made a net output of 43 million dollars on a weekly basis.

The interest of foreign investors in the stock, which made the highest exit after August, with an exit of 494 million dollars in the trading week of January 29, continues to decrease. Foreign investors, who exited over $ 400 million on a monthly basis in January, made sales of $ 183 million in the first week of February. Demand continues on the bond side. Purchases received as of January exceeded $ 1 billion.

In the country in foreign currency deposit accounts There has been a decrease of $ 2.132 billion in the last week, and the largest share of $ 1.379 billion in this weekly decline was in the households.

When we look at the change in TL deposits;

TL deposits, which declined to 1 trillion 485 billion liras in the trading week of January 29, rose to 1 trillion 487 billion liras in the week of February 5. While TL deposits proportionally increased from 46.2% to 47.2%, the ratio of foreign currency deposits to total deposits decreased from 53.8% to 52.8%.

Taking steps to stop the dollarization and increase the demand for TL, the CBRT thinks that TL will be more attractive in the upcoming period.

In addition to the record rise in foreign exchange rates, the demand for foreign currency increased due to the lack of interest yield and the increase in inflation. With the policy change in November, the TL recovered from a record low by almost 20%, and with the increase in the rate of interest, the most foreign exchange sales in about 10 months were made in the last week.

When we look at the change in reserves that suffered great losses in 2020, in the trading week of February 5;

  • Total foreign exchange reserves declined from $ 95.54 billion to $ 95.52 billion.
  • Net international reserves increased from $ 13.77 billion to $ 14.02 billion.
  • Gross reserves increased from $ 53.37 billion to $ 54.37 billion.
  • reserves declined from $ 42.17 billion to $ 41.15 billion in the last week.
  • As of the beginning of the year, there was an increase of approximately 2.8 billion dollars in foreign exchange reserves.

Author: Necdet Erginsoy

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