Feb 16 2018

Turkey sells foreign bonds to finance current account deficit

Turkey’s central bank sold foreign bonds including U.S. Treasury bills to finance the current account deficit and bolster its gold reserves last year, Haberturk newspaper’s Rahim Ak reported on Friday.

The bank sold $9.1 billion of the bonds in December alone, taking sales for the year to $16.3 billion, Ak said in the report, citing central bank data.

Despite an increase in banks’ reserve requirements for foreign currency and gold, the central bank could only increase its total reserves by $1.2 billion from $106 billion at the start of 2017 as it financed the current account deficit to the tune of $8.1 billion, Ak said.

The central bank increased its gold reserves last year to $23.5 billion from $15.9 billion and its cash reserves to $16 billion from $10.1 billion, he said.