Turkey sees remarkable shift in international net reserves
(MENAFN) In a remarkable turnaround, the Central bank of the Republic of Türkiye has witnessed a dramatic shift in its international net reserves, marking a significant milestone. Excluding swaps, these reserves surged to USD1.5 billion, marking a stark contrast from the daunting deficit of minus USD65 billion recorded just two months prior on March 29. This rapid ascent, totaling USD66.5 billion over a mere two-month period, underscores a remarkable trajectory of economic revitalization.
Simultaneously, gross reserves experienced a substantial uptick, escalating from USD123.1 billion to USD143.6 billion within the same timeframe. Such robust growth speaks volumes about the efficacy of Türkiye's anti-inflation program, spearheaded by the current economic administration following last year's presidential election.
Indeed, the positive repercussions of this program reverberate across various economic indicators, from bolstered Central Bank reserves to a palpable reduction in credit risk premiums. Notably, international investors are increasingly drawn to Türkiye's bond offerings, reflecting a burgeoning confidence in the nation's economic prospects.
This resurgence hasn't gone unnoticed on the global stage, as evidenced by the recent credit rating upgrades bestowed upon Türkiye by leading agencies such as Fitch Ratings and Standard & Poor's, elevating the country's rating from “B” to “B+”. Anticipation mounts for Moody's impending evaluation in July, with expectations high for yet another upward revision.
Central to these advancements is the palpable decline in Türkiye's credit risk premium, which has plummeted by approximately 450 basis points over the past year to a historic low of 261 basis points, marking the lowest level in four years. This reduction underscores Türkiye's burgeoning stature as an investment destination characterized by stability and resilience.
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