(MENAFN) Türkiye’s five-year credit default swap plunged to 233 basis points—the lowest reading since May 2018—as the government's anti-inflation strategy gains credibility with investors.

Economic expansion in the nation extended into its 21st consecutive quarter during the July-September period, while yearly price increases continued their downward path, fresh statistics show.

A rate reduction by monetary authorities and the central bank's total reserves climbing to an all-time peak of $198.4 billion in October fueled investor confidence.

Currency-Protected Turkish Lira Deposits and Participation Accounts saw their balance continue shrinking, falling to 22.4 billion Turkish lira ($527.7 million) after declining by 30.3 billion Turkish lira ($713.8 million) during the week ending November 21.

This balance reduction, combined with weakening physical gold appetite, pushed the CDS metric to its lowest point in over six years.

Simultaneously, Türkiye’s current account registered a $1.1 billion surplus in September, marking the third consecutive month of positive balances following $1.7 billion in July and $5.4 billion in August.

The Turkish Central Bank (TCMB) implemented several modifications to its reserve requirement framework. The temporary zero-percent reserve requirement for increases in long-term foreign currency liabilities directly sourced internationally will terminate at year-end without extension.

The monetary authority also removed disparities in reserve requirement ratios between foreign currency and gold deposit accounts.

Additionally, it reduced reserve requirement ratios for long-term foreign currency liabilities excluding deposits.

Finance company liabilities to domestic banks—which became subject to reserve requirements in 2022—were removed from this structure.

The credit growth limitation timeframe received a one-year extension.

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