Turks’ forex holdings dip below $200 bln, first time since May 2020

Turkish locals’ forex and precious metal holdings dipped below $200 billion for the first time since May 2020 to stand at $199.34 billion as of Dec. 16, central bank data showed on Thursday.

When adjusted for the parity effect, the data showed the hard currency holdings fell by $2.42 billion in the week to Dec. 16, with individuals’ holdings dropping $1.89 billion.

They have fallen sharply in recent weeks from nearly $214 billion at the end of October.

The forex and gold holdings hit a record high of $238.97 billion in December as Turks converted savings during a currency crisis that saw the lira lose 44 per cent against the dollar last year.

Turks have long snatched up hard currencies and gold for years as a hedge against inflation and the lira’s constant depreciation, which is around 30 per cent this year.