Turkey's energy importer Petroleum Pipeline Corporation (BOTAŞ) and other state entities bought a record $5.37 billion in foreign currency from the central bank in February, according to official data.
Due to soaring energy prices, total forex sales primarily to BOTAŞ have climbed by about $1 billion per month to a total of $15.1 billion in the last four months, reflecting fallout from a domestic currency crisis and the conflict in Ukraine.
In November – before the lira took a dramatic dive, jacking up import prices – the sales were only $2.23 billion.
The central bank has been selling forex to BOTAŞ since 2014.
Turkey has been heavily dependent on imports to meet its energy needs. Its energy costs started rising in September and surged 212% year-on-year in the first two months of 2022 to $16.8 billion, according to government data.
The outlook was clouded further on Monday when crude oil prices surged some 10% on the risk of a U.S. and European ban on Russian products over Moscow's invasion of Ukraine, and also due to delays in Iranian talks.
In November, Reuters reported that BOTAŞ – the central bank's largest buyer by far – was expected to turn to the bank to meet its growing forex needs as gas prices and demand climbed during the winter months.
Exacerbating the energy costs, the lira tumbled 44% against the dollar last year after the central bank slashed its policy rate by 500 basis points since September.
After two months of stability, the lira weakened again in the last two weeks due to concerns about Russia's invasion and the resulting surge in global energy prices.
The currency was at 14.3050 against the dollar on Monday. It hit a record low of 18.4 in December before authorities unveiled the interventions and a deposit-protection scheme.
The central bank's net international reserves fell to $18.19 billion as of Feb. 25 from $19.8 billion a week earlier.
