Turkish Central Banker Says Drop in Reserves Isn't Abnormal
The lira declined more than 5 percent on Friday, leading the retreat among emerging-market peers.
(Bloomberg) -- The recent drop in the Turkish central bank’s foreign reserves doesn’t reflect any extraordinary developments, a bank official said.
Foreign-debt repayments and sales of foreign currency to state companies that pay for energy imports can result in rapid changes in foreign reserves, the official said on Friday, asking not to be identified.
Recent foreign-debt repayments and foreign-exchange sales to state energy companies amounted to about $5.3 billion, the official said, adding that the Turkish central bank’s policy to accumulate foreign reserves remains in place.
The lira declined more than 5 percent on Friday, leading the retreat among emerging-market peers.
To contact the reporter on this story: Cagan Koc in Istanbul at ckoc2@bloomberg.net
To contact the editors responsible for this story: Onur Ant at oant@bloomberg.net, James Amott, Paul Abelsky
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