ANKARA, May 25 Reuters The Turkish central bank39;s net forex reserves dropped into negative territory for the first time since 2002, standing at 151.3 million on May 19, official data showed on Thursday, as it sought to counter forex demand ahead of Sunday39;s runoff vote.

President Tayyip Erdogan led rival Kemal Kilicdaroglu comfortably in the presidential vote on May 14 but he fell just shy of the 50 needed to win outright. The outcome will be decided in a May 28 runoff.

Forex demand in Turkey surged to record levels ahead of May 14 on companies39; and individuals39; expectations that the lira, which lost 44 in 2021 and 30 in 2022, will plunge after the vote.

The central bank39;s forex reserves have sagged in recent years due to costly market interventions and other efforts to cool forex demand.

The bank39;s net reserves dropped by 2.48 billion in the week to May 19, to their lowest level since February 2002. They have dropped 27.7 billion since the end of 2022.

The exchange rate used by Reuters on Thursday was 19.7607. The net forex reserves are pushed deeper into negative territory once outstanding swaps, which stood at 33.50 billion on Wednesday, are deducted.

In the first five weeks of 2002, net reserves were in negative territory, according to official data that goes back to the beginning of that year.

Reporting by Can Sezer; Writing by Ali Kucukgocmen; Editing by Daren Butler

Source Reuters