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Keeping Lira on Short Leash Pushes Turkish Reserves to Limit

     
Photographer: Simon Dawson/Bloomberg
Updated on

Turkey’s central bank is bearing the brunt of an effort to shore up the lira and the costs are starting to add up.

From a peak in late December, its net foreign-currency reserves have dropped around $9 billion, according to Bloomberg calculations using official data. The stockpile now stands at just under $35 billion, near the lowest in half a year, and covers just a fifth of Turkey’s foreign obligations over the next 12 months.