Turkey’s Central Bank Will Expand Key Bond Portfolio for ‘Flexibility’

Turkey’s central bank will boost government bond purchases next year to strengthen a key portfolio that’s used in managing lira liquidity.

The central bank aims to increase the size of its government bond holdings to 450 billion liras ($10.5 billion) in 2026, up from 262.3 billion liras currently. It will also have the option to make additional purchases for the so-called Open Market Operations (OMO) portfolio, the bank said in its Monetary Policy For 2026 report. The move aims to support “operational flexibility,” according to the central bank.