Record-breaking Reserves Surge with Increasing TL Confidence
Vice President Cevdet Yilmaz Highlights Positive Outcomes of Economic Policies
Vice President Cevdet Yilmaz recently made a statement on his social media account, emphasizing the positive results of the economic policies that have been implemented. Yilmaz highlighted the success in reducing the KKM balance while simultaneously strengthening reserves.
Yilmaz mentioned that the process of exiting the KKM was designed as a temporary measure and was carried out smoothly without causing instability in the financial markets. He stated, “Strengthening our reserves has a positive impact on the risk perception of Turkey.”
Following the termination of accounting and renewal of legal entities in KKM, Yilmaz noted a significant decrease in recent weeks. He stated, “Since August 2023, the KKM balance has decreased from $100 billion to $25.6 billion as of February 14th. Despite this decline, the transition from the KKM balance has been minimal due to the effectiveness of our policies.”
Yilmaz also mentioned that the confidence in assets and positive capital movements have led to a record-breaking increase in reserves. As of the week of February 14, the reserves reached $173.2 billion, the highest figure in the history of the Republic.
The Vice President concluded by stating that the strengthening of reserves, the decrease in KKM balance, and the increase in the deposit share of the Turkish Lira will continue to positively impact the risk perception of Turkey. These measures are also expected to reduce external financing costs and support the ongoing disinflationary process in the country.
