Foreign Currency Balance Sheets in Türkiye: Exposure and Interconnectedness

Alex Pienkowski

No 2023/132, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: Currency risk; balance sheets; Türkiye; FX position; aggregate FX exposure; position of the economy; foreign currency balance sheets; FX risk; Financial statements; Global (search for similar items in EconPapers)
Pages: 15
Date: 2023-06-23
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