Turkish central bank reserves fall to lowest since 2010

The gross foreign currency reserves of Turkey’s central bank fell $1.25 billion in a week to $68.92 billion on Sept. 14, the lowest level since April 2010.

Gold reserves totaled $18.65 billion versus $18.58 billion on Sept. 7, the central bank said in a weekly report published on Thursday.

Turkey’s gross foreign currency and gold reserves have fallen by more than $20 billion to $87.58 since the start of the year as the lira tumbled about 40 percent against the dollar and the central bank was forced to finance the country’s widening current account deficit in the absence of sufficient foreign investment.

Loans awarded by Turkey’s banks to consumers and companies fell 1.8 percent in the week to Sept. 14, while deposits dropped 0.6 percent, the central bank said. The Turkish banking industry’s ratio of loans to deposits now stands at 124.5 percent.