Concurrently, the bank's total gross reserves also plummeted by $9 billion to $105.13 billion, marking the lowest level since July 2022.

Analysts and bankers interpreted this as a reflection of the government's efforts to stabilize the Turkish lira currency.

Forex demand surged in the week preceding the presidential and parliamentary elections held on May 14, as companies and individuals expressed concerns over the potential depreciation of the lira following the elections.

The net forex reserves now stand at their lowest level since February 2002, continuing their decline over the years due to costly market interventions and measures to curb forex demand. Since the end of 2022, the net FX reserves have fallen by $25.22 billion.

The last time they reached negative territory was in early 2002, a year before Tayyip Erdogan's initial election as the Prime Minister of Turkey. Erdogan is currently facing a presidential runoff scheduled for May 28. (ILKHA)