ANKARA, May 18 Reuters The Turkish central bank39;s net international reserves dropped some 4.45 billion to a 21year low of 2.33 billion in the week to May 12, as forex demand surged ahead of elections, official data showed on Thursday.

The bank39;s total gross reserves plunged 9 billion in the same week to 105.13 billion, the lowest since July 2022. Bankers and analysts said this underlined authorities39; efforts to stabilise the lira currency.

Forex demand had reached historical highs in the week ahead of presidential and parliamentary elections on May 14, reflecting concerns among companies and individuals that the lira would weaken afterwards, bankers said.

The net forex reserves were at their lowest level since Feb. 2002, after declining in recent years due to costly market interventions and other efforts to cool forex demand.

The net FX reserves have fallen 25.22 billion since the end of 2022. They were last in negative territory in early 2002, a year before Tayyip Erdogan now facing a presidential runoff on May 28 was first elected to lead Turkey, then as prime minister.

The exchange rate used by Reuters on Thursday was 19.5389.

The net forex reserves are in deeply negative territory once outstanding swaps, which stood at 36.86 billion on Wednesday, are deducted.

The lira lost some 30 of its value against the dollar last year and 44 in 2021 due to a series of interest rate cuts that are part of Erdogan39;s unorthodox economic policies, which prioritise…