Investment firm Goldman Sachs has issued a warning regarding the stability of Turkey's central bank reserves, which have already experienced a net reduction of $30 billion over the previous year. This calculation accounts for valuation shifts, excluding fluctuations in gold prices and currency exchange rates. Analysts suggest that the recent decision to lower the benchmark interest rate from 37 percent to 36 percent, combined with potential political uncertainties linked to future elections, could exacerbate this downward trend. These reserves are critical for maintaining financial stability and defending the lira during periods of high foreign currency demand. Although the central bank had maintained steady rates for several months, the recent adjustment occurred despite expectations of stability from financial observers. The ongoing depletion of these assets poses a significant challenge to the nation's current economic strategy.
Source : Turkish Minute
