The level of international foreign exchange reserves, particularly in emerging economies, plays an important role in protecting economies against domestic and external shocks, meeting external debt payments and promoting the country’s credibility in international financial markets. Accordingly, the CBRT has pursued a policy aimed at accumulating foreign exchange reserves and FX reserves have increased significantly since 2002.
Therefore, utmost importance is attached to the prudent management of reserves providing room for maneuver for the CBRT, which focuses on its objective of maintaining price stability, for sustainability of the foreign exchange rate regime and effective application of the monetary policy.
Within this framework, the CBRT Law stipulates that the CBRT shall manage foreign exchange reserves in compliance with the monetary policy targets and practices by taking into account the security, liquidity and return priorities respectively.
Foreign Exchange Reserve Management at the CBRT