Turkey's Central Bank reports falling reserves and modest economic gains

The Central Bank of the Republic of Turkey (TCMB) said its total reserves fell to $152.1 billion in the week ending 12 June, a drop of $7.3 billion from the previous week. Gross foreign‑exchange reserves declined to $53.124 billion and gold holdings fell to $98.957 billion. The net international investment position widened to –$360.8 billion.

TCMB’s inflation outlook showed a continued decline in the overall trend, with core and services price growth easing and the bank expecting year‑end consumer‑price inflation near 30 % versus its 26 % target.

The Real Sector Confidence Index (RKGE‑MA) rose by one point to 102, its highest level since February, while the broader RKGE reached 103.5. Manufacturing capacity utilisation increased to about 74 % in June after a modest rise in May.

Foreign investors sold equities worth $117.8 million but bought government bonds totaling $428.8 million, raising their domestic bond holdings. In Kocaeli, industrial capacity utilisation was 70.6 % in June, with metal output above average and chemistry below.

Capital Economics warned that a renewed energy‑price shock could pressure the Turkish economy and postpone any future rate cuts, noting that inflation remains above the central bank’s target despite the easing trend.