Half-Trillion Outflows from Money Market Funds and Deposit Movements
Following new regulations and liquidation decisions regarding investment funds, a significant amount of outflows occurred from money market funds.
Following moves to curb price increases in hedge funds and the seizure of 131 investment funds with liquidation decisions, official and institutional data revealed that nearly half a trillion has flowed out of money market funds.
Central Bank Weekly Statistics
According to the weekly Money and Banking Statistics published by the Central Bank, the size of Money Market Funds declined during the week of September 11-18, when the fund investigation began.
The fund size dropped from 2 trillion 135 billion liras to 1 trillion 679 billion liras during this period, recording a total decrease of 456 billion liras.
The Scale of Liquidation and Technical Impacts
It is stated that a portion of the decline seen in money market funds stems from negative developments in investment funds.
Additionally, it is noted that another part stems from funds whose liquidation was decided appearing as zero due to the inability to determine prices.
Economist Haluk Bürümcekçi's Report
Economist Haluk Bürümcekçi detailed the scale of the outflow from money market funds in a report sent to his subscribers.
According to TEFAS data, the total value of money market funds declined from 3.292 trillion TL on September 11 to 2.844 trillion TL on September 21.
Calculation of Net Investor Outflows
To measure net investor movement, Bürümcekçi evaluated the daily change in the number of shares in circulation for each fund using the unit share price.
As a result of this calculation, it was observed that there was approximately 253.4 billion TL in net investor outflows from money market funds during the period of September 11-21.
Upward Trend in TRY Deposits
Bürümcekçi examined the BRSA's daily banking data to see where the capital exiting the funds might have been directed.
According to BRSA data, total TRY deposits rose from 19.7 trillion TL to 20.1 trillion TL between September 11 and 17.
Relationship Between Fund Outflows and Deposits
The simultaneous occurrence of outflows from money market funds and the increase in TRY deposits drew attention.
This situation reinforces the possibility that a significant portion of the money leaving the funds may have been directed toward TRY deposits.