Recovery process begins in money market funds following fund crisis
Following the crisis in money market funds, the first signs of recovery have been observed, with fund sizes rising again.
According to data released by the Central Bank of the Republic of Turkey, following the sharp outflows experienced after the fund crisis, money market funds saw an influx of 30 billion liras in the week of October 9, pushing the total fund size past 1.652 trillion liras.
First Increase After the Fund Crisis
Following the crisis period in money market funds, the first signals of recovery in the markets have begun to be clearly observed.
The weekly Money and Banking Statistics published by the Central Bank of the Republic of Turkey confirmed this development.
Developments in the Week of October 9
Following regulatory measures and official announcements, a total resource influx of 30 billion liras occurred into money market funds during the week of October 9.
With this positive development, the total fund size managed to surpass the threshold of 1.652 trillion liras.
Outflows Approaching Half a Trillion
In the week of September 18, when the investigation process began, the size of the funds had dropped from 2.135 trillion liras to 1.679 trillion liras.
The total outflows experienced during this period reached a magnitude approaching half a trillion liras, drawing attention in the markets.
Reasons Behind the Decline
It was estimated that a major portion of this total decrease of 456 billion liras stemmed from negative developments in investment funds.
Additionally, the inability to determine prices in certain funds that were decided to be liquidated was among the factors that accelerated the decline during this process.
Weekly Data and Process
Although the pace of the decline slowed down in the week of September 25, it continued, and the fund size retreated to 1.667 trillion liras.
In the following week, the downward trend persisted, and the fund size descended to the 1.622 trillion level.