The Turkish Central Bank is achieving an increase in foreign exchange reserves in 2022

The head of the Turkish Central Bank, Shihab Kavji Oglu, revealed that the country’s central bank reserves had increased during the current year, in light of the semi-stability of the exchange rate of the Turkish lira against the US dollar, after a period of significant decline in the exchange rate, which occurred late last year.

Kavji Oglu said that the Turkish central bank is “the only central bank in the world that has increased its reserves since the beginning of this year,” according to what he said in an interview with the Turkish government own News TV Channel “TRT Haber” last Tuesday.

In his speech, he stressed that the Central Bank of Türkiye “has become a bank that contributes to the reserves daily, and provides reserves from various sources,” noting that Türkiye is a country with heavy tourism activity, and that “it’s not possible for unknown source flows of foreign currencies into the country”.

The inflation in Türkiye, in the data for the month of November, had recorded a decline on an annual basis, from 85.51 to 84.39%, after a wave of increases that followed the rate cut.

Inflation began to decline in Türkiye, while Kavji Oglu also confirms that the decline will continue.

Turkish President Recep Tayyip Erdogan had affirmed since the days of his government’s insistence on the low interest policy, indicating that his country’s economy had entered a stage of stability and a trend towards raising production, after fighting high interest rates.

Erdogan had dismissed three consecutive governors of the Central Bank of Türkiye during the current year, due to the dispute over the shape of the interest rate, while declaring his fight against the inflation rate and the high interest rate.

This economic goal was announced several years ago, as the ruling AKP administration tried to reduce interest rates, repeatedly, but was unable to do so, until Erdogan cracked down on the high interest rate and its supporters in the Central Bank.

The Turkish president is constantly urging the Central Bank’s Monetary Policy Committee to lower the interest rate, as he set himself a clear goal, which is to bring it down to the single digits at the end of this year, which was achieved in the last interest rate cut last month, when the interest rate reached 9%.