As per the most recent central bank data, foreign investors’ total stock of Turkish government debt securities fell to USD 7.18 billion in the week ending May 8 from USD 8.39 billlion a week ago. The heavy USD 1.2 billion selloff corresponds to the central bank continuation of rate cuts along with the swap ban imposed on three foreign banks that was reveres in a week’s time.
Thus, the central bank net fx reserves droppped by another USD 1.97 billion to USD 26.02 billion as of May 8, while in the same week, gross foreign exchange reserves decreased by USD 308 million to USD 51.1 billion.
The stock of government bonds in the hands of foreign investors was around USD 30 billion ahead of Turkey’s August 2018 currency crisis and has seen a peak of USD 70 billion during 2010. Now that its current level is a tiny USD 7.2 billion, it is no surprise that the pressures on the Turkish lira continues.