The Turkish Central Bank (CBRT), which called for an extraordinary general assembly on March 28, is expected to announce a loss of over TRY 850 billion for 2023, and also has an unrealized foreign exchange risk of over TRY 800 billion. The profitability of the Central Bank, which has been transferring significant funds to the Treasury for many years, came to an end for the 2023 fiscal year.
It is stated that the CBRT’s loss of approximately TRY 850 billion stems from the foreign exchange transactions and the forex protected deposits burden it assumed in the 2023 accounting period. In addition, the unrealized foreign exchange risk in the revaluation account also reaches TRY 800 billion. The bank will announce the balance sheet and other statements at the ordinary general assembly to be held in April, not at the extraordinary general assembly on March 28.
Sources interviewed by the EKONOMİ newspaper stated that the Bank incurred serious losses due to forward foreign exchange transactions after the Central Bank was given the burden of currency-protected deposits in 2023.
Information on how the bank will manage this loss in 2024 is expected to be provided at the ordinary General Assembly in April. It is stated that the management of the loss by carrying it on the balance sheet means that it is possible to cover it from the profits to be obtained for several years, and that the high amount of profits that the Bank transferred to the Treasury in the past years will not be seen for several years. On the other hand, although not yet realized, there is also a foreign exchange risk of over TRY 800 billion on the balance sheet. It is seen as possible to cover this foreign exchange risk in 2024.
