Goldman Sachs: Half of the money coming out of money market funds went towards foreign currency and gold

According to a note by Goldman Sachs analysts dated October 2, data for September indicated that approximately half of the $13 billion outflow from money market funds in Türkiye that month was directed to foreign currency and gold deposits in the country.

According to the note prepared by Clemens Grafe and Başak Edizgil, foreign currency deposits increased by 1.3 billion dollars on a parity-adjusted basis in the week ending September 25, while gold deposits remained flat.

As of September 28, Turkish lira deposits increased by 7 billion dollars compared to the previous week.

468 billion lira outflow in money market funds in two weeks

According to the weekly Money and Bank Statistics published by the Central Bank of the Republic of Turkey, the size of money market funds decreased from 2 trillion 135 billion lira to 1 trillion 679 billion lira in the week of September 18, when the fund investigation started.

It was estimated that most of this amount in money market funds, which decreased by 456 billion lira, was due to negative developments in investment funds, and some of it was due to the inability to determine fund prices in funds for which liquidation decisions were made.

In the week of September 25, although money market funds slowed down this time, they continued their decline, falling from 1 trillion 679 billion lira to 1 trillion 667 billion lira.

Thus, the two-week outflow from money market funds reached 467 billion 717 million lira.