The Central Bank is not intervening in the foreign exchange market, Governor Hafize Gaye Erkan has said, pointing out that the increase in reserves is an indication of this.
"If there had been interventions in the U.S. dollar [in the FX market], reserves would have not increased that much," Erkan said in an interview with daily Hürriyet.
Türkiye's Central Bank has announced additional steps under its plan to continue to simplify and improve the existing micro- and macroprudential framework.
The bank on Oct. 26 delivered a 500 basis points hike in its policy rate, the one-week repo auction rate, from 30 percent to 35 percent. The rate hike, which was the fifth time in a row, was in line with economists' expectations.
Money parked at the FX-protected deposit accounts, also known as KKM, has declined for the first time since the start of the year.
KKM deposits fell around 39 billion Turkish Liras from 3.41 trillion liras on Aug. 18 to 3.37 trillion liras ($124 billion) as of Aug. 25, the weekly data from the Banking Regulation and Supervision Agency (BDDK) showed.
Turkey must sustain its push on production and exports to prevent the economy falling into recession even as it fights inflation, Vice President Cevdet Yilmaz said on Friday.
Since May elections, President Recep Tayyip Erdogan's government launched a U-turn away from unorthodox policies including interest rate cuts that had sparked a lira crisis and sent inflation soaring.