Turkey's Central Bank Assesses 2024 Losses Reaching $18 Billion

In 2024, Turkey's Central Bank incurred a net loss of 700.4 billion Turkish lira, equivalent to approximately $18.4 billion, according to official data published in the Turkish Official Gazette. This loss is the second-largest in the bank's history, following a loss of 818.2 billion lira (around $25 billion) in 2023

What Caused the Loss?

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The losses are attributed to the "exchange rate-protected deposits" program, which required the central bank to pay high-interest rates to depositors holding Turkish lira. This added a significant financial burden to the bank's balance sheet. As a result of these losses, the central bank decided not to distribute any profits to the state treasury in 2023 and 2024

Despite these losses, the central bank's assets saw a notable increase, rising to 8.59 trillion lira by the end of 2024, compared to 6.92 trillion lira in the previous year. Additionally, the central bank provided 526.7 billion lira in rediscount loans to support export sectors and sectors generating foreign currency revenue, with the aim of boosting foreign trade and improving the current account balance

The central bank is expected to hold its general assembly on April 30, 2025, in Ankara to discuss the results of 2024 and take necessary decisions regarding future policies