Turkey’s central bank reserves recorded a sharp decline as political tensions increased following the removal of opposition leader Özgür Özel from his position.
According to official central bank data, total reserves fell to $160.2 billion, down by $8.4 billion from the previous week’s $168.6 billion. The drop highlights the financial pressure facing the country amid the latest political developments.
Reports indicate that the central bank sold large amounts of foreign currency in an effort to support the Turkish lira and limit market volatility after a court decision annulled the Republican People’s Party’s (CHP) 2023 internal elections and removed Özgür Özel from office.
The decline was also reflected in other reserve indicators. Net reserves dropped from $52.1 billion to $47 billion, while net reserves excluding swap agreements fell sharply to $28.7 billion, compared with $37.2 billion previously.
The financial uncertainty comes as Özgür Özel announced plans to collect signatures for extraordinary party elections scheduled for next July in response to the decision that removed him from leadership.
Investors are closely watching the situation, as political instability often increases pressure on financial markets and the national currency. The latest figures suggest that authorities are facing growing challenges in maintaining economic stability while navigating a tense political environment.
The sharp decline in reserves has raised concerns among market observers about the potential impact of continued political uncertainty on Turkey’s economy, currency, and investor confidence in the months ahead.
