Turkey’s 12-month current account deficit at 10-year peak

SHAFAQNA TÜRKİYE- According to the balance of payments data released by the Central Bank of the Republic of Turkey (CBRT), the current account deficit exceeded expectations and amounted to $8.78 billion in February.

In February, the current account deficit for 12 months amounted to $55.4 billion. Accordingly, the 12-month current account deficit reached its highest level in 10 years.

The 12-month current account deficit reached its highest level since August 2012, according to the CBR.

Foreign trade deficit exceeded $10 billion in February

The deficit of foreign trade, determined in the balance of payments, in February amounted to 10 billion 401 million dollars. During this period, income from the balance of services amounted to 2 billion 334 million dollars, and net income from the tourism item – 1 billion 652 million dollars.

The primary income balance sheet recorded a net outflow of $815 million in February, while the secondary income balance sheet recorded a net inflow of $99 million.

According to the CBR, in February there was a net inflow of $505 million from direct investment and $240 million from portfolio investment.

In February, net inflows were $505 million from direct investment and $240 million from portfolio investment.

By sub-item analysis, non-residents made a net purchase in the domestic government debt securities market of $14 million and a net sale in the stock market of $185 million in February.

As for issuing bonds abroad, banks used $1 billion 158 million.

In February, there was a net decrease in official reserves by 4 billion 677 million dollars.

Effective and deposit assets of domestic banks in their foreign correspondents decreased by $80 million in February. Domestic deposits of foreign banks increased by a total of US$272 million, with a net decrease of US$109 million in foreign currencies and a net increase of US$381 million in Turkish lira.

During this period, the general government sector realized net disbursements of $222 million, while banks and other sectors realized net use of $1 billion 124 million and $338 million, respectively.

In February, there was a net decrease in official reserves by 4 billion 677 million dollars.