Foreign inflows to Turkey reach $75 billion

Data showed short-term foreign positions in Turkish lira assets rose to an estimated $75 billion, prompting officials to review measures to limit sudden outflows that could pressure the currency.

Officials said the inflows have strengthened FX reserves and helped back the lira, but they warned that rapid reversals would raise exchange-rate volatility and complicate policy decisions.

$75 billion lira positions

Data showed the bulk of inflows is parked in short-dated lira instruments that benefit from the central bank's 37% policy rate, officials said. The holdings are estimated at about $75 billion and are concentrated in instruments that can be withdrawn quickly.

Officials said options under discussion include taxing gains from money-market funds and other measures aimed at reducing the appeal of short-term carry trades. Policymakers described taxation as a direct way to lower net foreign returns; other tools under review would target liquidity and tenor of inflows.

The authorities framed the choices as trade-offs between bolstering reserves and preserving market access for foreign investors. Officials said a final decision on any new measures is expected by September 9, 2026.