Turkey to raise government bond holdings in 2026

Turkey intends to raise its government bond portfolio in 2026 to 450 billion lira ($10.5 billion) from the current 262.3 billion lira, the central bank said.

The proposed increase comes as 67.7 billion lira of the central bank’s open market operations (OMO) will mature next year.

The central bank said its main goal is to achieve and maintain price stability.

“All available policy instruments will continue to be decisively used in line with this objective. The central bank will monitor financial stability as a supporting factor for price stability,” it said in its 2026 monetary policy document.

The inflation target remains at 5 percent, and 2026 monetary policy aims to create the conditions necessary to bring price growth down to the medium-term goal.

Annual consumer-price rises eased to 31 percent in November this year, down nearly every month since peaking at 65 percent in May 2024.

The central bank trimmed its main lending rate from 50 percent last December to 38 percent 12 months on. Further cuts are forecast in the new year, in line with a projected fall in inflation towards the government’s 2026 year-end target of 16 percent.

Further reading:

• Turkey economy in numbers
• Turkey’s finances hold firm despite record public debt
• Turkey ends 2025 with stronger economy despite high inflation

According to the document, the monetary policy committee will hold eight meetings next year, while inflation reports will be published four times a year.

The central bank will maintain its exchange-rate regime and has “no commitments” to any level or direction for the lira.

“Strengthening international reserves is essential for effective monetary policy and financial stability,” according to the document.

In 2025, international reserves continued their upward trend, rising by $35.7 billion to $190.8 billion as of December 12.

“As long as market conditions allow, we will maintain our international reserve build-up strategy in 2026,” the central bank said.