ANKARA - Turkey's central bank will continue increasing its foreign currency reserves, its governor Sahap Kavcioglu said on Friday.
Forex reserves have dropped sharply in recent years due to market interventions and in the wake of a currency crisis last December. The lira lost 44% of its value against dollar last year and another 29% this year. Recent central bank data has shown a recovery in reserves after they touched 20-year low in July.
Speaking in parliament, Kavcioglu also said a scheme that protects lira savings against foreign currency fluctuations helped increase the share of lira deposits in the financial system and would not harm the balance sheet of the central bank.
Exchange rate stability was now achieved, Kavcioglu said, adding that the central bank was prioritising steps aimed at removing structural causes of high inflation, currently running at a 24-year high of 85.51%.
(Reporting by Nevzat Devranoglu; Editing by Alex Richardson)