Foreign Currency Balance Sheets in Türkiye: Exposure and Interconnectedness
June 23, 2023
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Summary
As a heavily “dollarized” economy, large foreign currency mismatches exist between institutional sectors within Türkiye, as well as with non-residents. Combining several separate data sources, this working paper builds a picture of the aggregate FX exposure of the total economy. It explores the interlinkages between sectors and how they have evolved in recent years. Since the start of the pandemic, the overall net FX position of the economy deteriorated, and there has also been a considerable shift in FX risk from the private to the public sector. Especially for the central bank, this shift constrains policy space.
Subject: Financial statements, Foreign exchange, Public financial management (PFM)
Keywords: aggregate FX exposure, balance sheets, Currency risk, Financial statements, foreign currency balance sheets, FX position, FX risk, Global, position of the economy, Türkiye
Pages:
15
Volume:
2023
DOI:
Issue:
132
Series:
Working Paper No. 2023/132
Stock No:
WPIEA2023132
ISBN:
9798400245879
ISSN:
1018-5941
