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IPFS News Link • Currencies

Turkey Received $1 Billion Bailout From China As Reserves Ran Out

• by Tyler Durden

As Bloomberg reports, according to two people with direct knowledge of the matter said, Turkey received around $1 billion worth of funds from China in June under a swap agreement that dates back to 2012.

The cash boosted Turkey's foreign reserves in an election month and at a time when they were under intense scrutiny from investors.

The scrutiny was due to the fact that, as we detailed previously, traders were questioning the reality of Turkey's reserve data - which had been grossly manipulated for swap contracts and was - in real terms - practically zero...

The chart below shows two sets of numbers: Turkey's true net foreign reserves, and the number that the central bank had used for public consumption, which includes the nominal amount of swaps.