By Gokhan Ergocun
The Turkish Central Bank’s total reserves reached $112 billion as of the end of August, the bank announced on Thursday.
Official reserve assets rose by 4 percent, compared to $107.6 billion as of July 31, according to the bank's international reserves and foreign currency liquidity report.
In August, foreign currency reserves -- in convertible foreign currencies -- rose to $89.97 billion, a monthly increase of 4.1 percent.
As another sub-item of official reserve assets, gold reserves -- including gold deposits and, if appropriate, gold swapped -- climbed 4.3 percent last month to reach $20.5 billion, compared to the previous month.
At the end of August 2016, the bank's total reserves were $122.9 billion, including $102.2 billion in foreign currency along with $19.2 billion in gold reserves.
Over the past 10 years, Central Bank of the Republic of Turkey (CBRT) official reserve assets rose nearly 39 percent, from $76.4 billion at the end of 2007 to last year's close of some $106 billion.
In mid-December 2013, the bank's total reserves saw a historic high of nearly $136 billion, including some $21 billion in gold reserves.
Meanwhile, the bank noted that short-term predetermined net drains of the central government and the CBRT -- foreign currency loans, securities, and foreign exchange deposit accounts of residents abroad within the CBRT -- fell 0.4 percent in August from the previous month, realizing at $11.88 billion.
Of this amount, $7.75 billion belongs to principal repayments and $4.13 billion to interest repayments, it added.
The CBRT report also said contingent short-term net drains on foreign currency rose 2.6 percent to $65 billion last month, compared to June.
According to the bank's definition, 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 letters of credit items on the CBRT’s balance sheet.
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