MB struggles to keep the dollar at 27 lira

Treasure The words of Mehmet Şimşek, who took office as Minister of Finance three months ago and took the helm of the economy, that the Central Bank (CBRT) did not intervene in the foreign exchange market considering the target level, were received with a reaction. Şimşek said the day before: “The accusation that the Central Bank intervened in the exchange rate by selling reserves considering the target level does not reflect the truth.” Starting in June, when Şimşek took office, there was a 20.77 percent depreciation in TL until mid-July, and the dollar had risen from 20 lira to 26 lira.

CONTINUOUS SALE

The decrease in foreign exchange intervention also contributed significantly to the improvement of CBRT reserves in this period. Economists, on the other hand, drew attention to the fact that the CBRT continues to sell foreign exchange, but is in a net buying position. According to the calculations made from the analytical balance of the CBRT, it can be seen that net purchases worth 17 thousand 978 million dollars were made in 29 business days that cover the dates from June 1 to July 14. However, in the last month and a half, when the dollar was relatively stable at TL 27, the CBRT’s net currency position began to deteriorate. The daily change in the CBRT’s FX position shows that it is in a strong seller’s position in the money markets, especially during August. According to the data, in the 30 business days between July 15 and August 29, the CBRT net sold 8.612 million dollars in foreign currency. In said period, the depreciation of the TL was limited to only 2.7 percent. Despite the strong rise of the dollar throughout June, the CBRT, which was in a currency buying position, tried to keep the dollar at the threshold of 27 lira in the last month and a half, which does not confirm the words of Şimşek that the CBRT will not Do not sell to fix a level in the exchange rate. On the contrary, it shows that the CBRT stepped in with billions of dollars to maintain its lira 27 threshold.

‘The visible people do not want a guide, be transparent’

Net The effort of the Economy administration, which has a reserve of 58 billion dollars and tries to balance its balance with swaps and send a message of transparency, still generates surprise in the markets. Economist Uğur Gürses drew attention to the words of Minister Şimşek in his message on social networks (X): “The visible village does not want a guide. If the authorities want to convince the public, they provide data transparency so that everyone can access the information and be convinced. You disclose KKM data transparently; It can be understood why the Central Bank creates TL and how many currencies it sells for KKM.