Sebnem TURHAN

The exit of foreign investors from Turkish securities has become a trend. According to the Central Bank’s weekly securities statistics, foreign investors became net sellers of equities and government debt securities during the week of July 8. According to the data, it had a net sale of $62.2 million in stocks and $54.5 million in DIBS in the week of July 8. Sales to foreign investors of corporate debt securities amounted to $1.7 million. Thus, since the beginning of the year, the net outflow of foreign investors on equities and government securities, corrected for variations in market prices and exchange rates, reached 5 billion 212 million dollars.

According to data from the Central Bank, the stock market, which was 15 billion 297.3 million dollars on July 1, fell to 14 billion 742.8 million dollars on July 1. During the same period, non-resident GDDS inventory increased from $1.456 million to $1.342.8 million, and SIS inventory increased from $123.5 million to $117.5 million. millions of dollars. Foreign investors have exited the stock for the past 5 weeks without a break.

As of the end of the week of July 1, year-to-date, 3 billion 438.5 million dollars in stocks and 1 billion 773.6 million dollars in GDDS, total production reached 5 billion 212.1 millions of dollars. In the week of July 8, the exchange rate in Borsa Istanbul was 33.5%. In the two working days after the holiday, the share of foreign investors in the stock market fell to 33.15% in line with the global trend. In other words, it will come as no surprise to see foreign investors’ exit from the stock continue in data for both business days of the past week, which will be announced today.

Strong parity effect on foreign currency deposits

On the other hand, the Central Bank’s weekly monetary and banking statistics also revealed the peg effect created by the strong dollar. According to the data, although the stock difference of residents’ foreign currency deposits decreased by 1 billion 60 million dollars, foreign currency deposits increased by 1 billion 516 million dollars due to the parity effect with a difference negative inventory of 2 billion 576 million dollars.

Foreign currency deposits from natural persons increased by $593 million, adjusted for the parity effect, and foreign currency deposits from legal entities increased by $923 million, adjusted for the parity effect. While there was a $304 million increase in corporate dollar-denominated foreign currency deposits, there was a decrease in euro and precious metal foreign currency deposits. Currency deposits in euros and precious metals in real persons also fell. However, in the week of July 8, the appreciation of the dollar against the two assets and the calculation of these two deposits in dollars led to an increase in foreign currency deposits by parity effect.

Net international reserves at 20-year low

As of July 8, the Central Bank’s net international reserves, as defined by the IMF, decreased by $1.44 billion from the previous week and fell to $6.73 million. Thus, net international reserves fell to the lowest level in 20 years since April 2002. Its total reserves also fell below $100 billion during the week of July 8. The CBRT net reserve excluding swaps was negative $54.8 billion in the week to July 8. The net reserve, excluding swaps, was minus $54.3 billion the previous week.

Total Central Bank reserves fell by $2.291 million in the week to July 8 from the previous week and fell to $98.651 million. Thus, on July 8, the gross foreign exchange reserves of the Central Bank decreased from 922 million dollars to 58 billion 867 million dollars. Gross foreign exchange reserves amounted to 59 billion 789 million dollars on July 1. During the said period, gold reserves decreased by $1.370 million, from $41.154 million to $39.784 million. Thus, the total reserves of the Central Bank decreased by 2 billion 291 million dollars in the week of July 8 compared to the previous week, going from 100 billion 942 million dollars to 98 billion 651 million dollars.

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