Duvar English – Reuters

Turkey’s Central Bank’s net international reserves (forex and gold) dropped by $148 million, reaching $16.8 billion on Oct. 2, the bank reported on Oct. 8.

While net international reserves hit a new low level, nearing the March 2004 level of $16.3 billion, gross international reserves dropped by $1 billion, reaching $41.4 billion.

Turkey’s net international reserves totaled $40.9 billion in January, but had more than halved by Sept. 25, measuring a mere $16.9 billion.

Meanwhile, the Turkish lira hit a record low for the second straight session on Oct.8, dropping by 0.7% to an all-time low of 7.9389 to the dollar, weighed by concerns over possible U.S. sanctions, the Caucasus conflict and uneasy ties with the European Union.

While the Turkish central bank is expected to step in and support the lira, doubts persist over the scale of intervention the bank will be able to provide, given that it has already been burning through its reserves to prop up the currency.