Central Bank of Türkiye Governor Fatih Karahan told parliament’s Plan and Budget Committee that the Fund Board had decided, in principle, not to use public resources in the liquidation of the funds at the center of the so-called fund investigation. He said outflows from money market and similar funds had largely shifted into bank deposits, and that net reserves excluding swaps stood at $40 billion as of Sept. 25.
Karahan also said the share of lira deposits had risen above 61%, total loan growth had slowed from 35% at the end of February to around 25%, and the sliding-scale fuel tax system had limited the pass-through of the global supply shock to domestic fuel prices by about 16 percentage points. Growth slowed to 2.3% year-on-year in the second quarter.