“International Reserves and Foreign Currency Liquidity” Table

Methodology for Turkey

The “International Reserves and Foreign Currency Liquidity” table is prepared within the framework of Special Data Dissemination Standards – SDDS conducted by the International Monetary Fund (IMF). The data contained therein are produced by using the Central Bank of Turkey (CBRT) and the Undersecretariat of Treasury (UT) sources in line with the coverage, definition, and classifications specified in the IMF Operational Guidelines.

The monthly-prepared table covers detailed information on “official reserve assets,” “predetermined short-term net drains on foreign currency assets” (including residual maturity) and “contingent short-term net drains on foreign currency assets.” The table is composed of three sections:

Section I: Official Reserve Assets and Other Foreign Currency Assets (approximate market value)

A. Official Reserve Assets:

It includes “Foreign Currency Reserves” (securities, currency, and deposits), “IMF Reserve Position,” “SDRs” and “Gold.” Securities and gold are valued at market prices.

B. Other Foreign Currency Assets:

Share participations in international organizations, miscellaneous receivables and other assets in foreign currency are included.

Section II: Predetermined Short-Term Net Drains on Foreign Currency Assets

1. Foreign Currency Loans, Securities and Deposits:

It covers:

· Principal and interest repayments of foreign currency loans (including bond issues) of the central government (consolidated budget) and the CBRT to be made within one year and,

· Principal and interest repayments of foreign currency-denominated government papers issued by the Treasury to be made within one year,

· Principal and interest repayments of Foreign Exchange Deposit Accounts of Residents Abroad with the CBRT (named as Dresdner Deposits) maturing within one year regardless of the original maturity (*).

Section III. Contingent Short-term Net Drains on Foreign Currency Assets (nominal value):

1. Contingent Liabilities in Foreign Currency:

It covers:

a) Collateral guarantees on debt falling due within one year

· Principal and interest repayments of the public sector’s Treasury-guaranteed foreign currency debt to be made within one year.

b) Other contingent liabilities

· Dresdner Deposits with remaining maturity of longer than one year (*),

· Banks’ Reserve Requirements in foreign currency held with the CBRT,

· Letters of credit, non-guaranteed trade credits, and bills and remittances payable.

(*) According to the methodology, Dresdner Deposits maturing within one year and with remaining maturity of longer than one year are presented under Section II and III respectively. However, long-term trends show that there are no significant withdrawals and the accounts are rolled over by adding interests accrued to principal. This is also the case even in times of financial crisis.