Turkish corporate sector open positions
In Turkish, we have this great saying “the good human drops upon his word”- you say this when the person walks in just as you are speaking about him/her. Since corporate sector open positions have been on the agenda for a while, thanks to Central Bank Governor Erdem Basci’s infamous speech last Friday in Denizli, it was only appropriate that the Central Bank released the corporate sector foreign currency positions data for 1Q on Friday:
As I argued before, I prefer to combine the foreign currency exposure of corporates with real persons’ (I know the plural is people, but that’s how the data is called) foreign currency deposits (I don’t put legal persons, i.e. corporates, in, as that would be double-counting).
Of course, the numbers change a lot, but you can see that there is not much of a difference in trends of late.
What is more interesting is the V-shape in adjusted open positions during the crisis. Since corporate open positions were more or less constant, this means real persons’ were building FX deposits, and this is indeed the case:
Note that this is overall deposits, i.e including the corporates, but it is there is not a much difference between real and legal persons. As expected, this FX buying happened while the lira was appreciating against the exchange rate basket (50% euro, 50% dollar).
BTW, my next post will be about FX retail deposits.
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