ISTANBUL: Turkish locals’ forex and precious metals holdings dropped to $221.20 billion in the week to April 2 from $223.67 billion a week earlier, according to central bank data on Thursday.

The holdings have eased from a record high of $236.11 billion in January. When adjusted for the parity effect, the data showed the hard currency holdings dropped by $2.02 billion in the week to April 2.

Turks flocked to hard currencies in recent years as a hedge against double-digit inflation and an ailing lira, which lost 20% of its value against the dollar last year. The central bank is watching keenly for a reversal in this dollarisation trend before it starts rebuilding its depleted FX reserves.

Data also showed on Thursday that foreign investors sold $140.4 million worth of Turkish government bonds in the week to April 2, as well as $364.4 million worth of stocks.

Separately, the central bank’s gross forex reserves fell to $48.09 billion in the same period from $50.89 billion a week earlier.