Turkish Central Bank's foreign currency reserves rise to $121.3 bln in September

Official reserve assets of the Turkish Central Bank increased to $121.3 billion as of the end of September, up 3% from the previous month, according to new figures released on Tuesday.

Foreign currency reserves -- in convertible foreign currencies -- soared 8.1% month-on-month to $74.9 billion, the bank's international reserves and foreign currency liquidity report showed.

The bank's gold reserves -- including gold deposits and, if appropriate, gold swapped -- fell 5.1%, reaching $38.5 in the same period.

September's figures were the highest since August 2016 when official reserves were at nearly $123 billion.

Annually, the bank's official reserves jumped 52.2% from $76.7 billion at the end of September 2020.

Short-term predetermined net drains on the central government and Central Bank -- foreign currency loans, securities, and foreign exchange deposit accounts of residents abroad within the bank -- climbed 6.5% to $24.6 billion.

According to the bank's definition, the contingent short-term net drains on foreign currency consist of "collateral guarantees on debt due within one year" and "other contingent liabilities," which are the banking sector's required reserves in blocked accounts in foreign currency and gold, and the letters of credit items on the Central Bank's balance sheet.