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ANKARA: The Turkish central bank’s total reserves are expected to have dropped $3 billion to around $98.5 billion in the week to May 26, four bankers said on Tuesday, indicating a further decline as authorities countered a surge in demand for forex.

The central bank’s net international reserves were also expected to have dropped more than $2 billion in the same week, dropping further into negative territory to a level of $-2.5 billion, the bankers said.

Turkiye’s central bank holds policy rate at 8.5% ahead of election runoff

Demand for forex reached historical highs ahead of and during the process of this month’s parliamentary and presidential elections on expectations that the lira would depreciate after the vote.

The currency has weakened 8% against the dollar this year, touching fresh record lows in recent days. It lost 44% in 2021 and 30% in 2022.

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