NEWS ECONOMY NEWS        11/11/2020

Turkey’s current account deficit is USD 28 billion for first 9 months of 2020

The Turkish Central Bank recorded a USD 2,364 million current account deficit in September 2020, a negative increase of USD 5,192 on the surplus of USD 2,828 million for the same month of the previous year.

 

The Central Bank showed exports as USD 15,993 million and imports at USD 19,702 million in September 2020, giving a trade deficit of USD 3,709 million, an increase of USD 3,044 million (457.7%) on the trade deficit of USD 665 million of the same month of the previous year.

 

For the first nine months of 2020, the current account deficit is USD 27,973 million, compared with a surplus of USD 5,299 million for the same period of the previous year. 

 

With regards items of the current account, the Central Bank’s analysis was as follows :

“The current account posted USD 2,364 million deficit compared to USD 2,828 million surplus observed in the same month of 2019, bringing the 12-month rolling deficit to USD 27,539 million. This development is mainly driven by the net outflow of USD 3,709 million in the goods item increasing by USD 3,044 million, as well as the net inflow of USD 1,692 million in services item decreasing by USD 2,869 million compared to the same month of the previous year. Gold and energy excluded current account indicated USD 3,236 million surplus, in comparison to USD 6,046 million surplus observed in the same month of the previous year. Travel item under services recorded a net inflow of USD 1,555 million, decreasing by USD 1,916 million compared to the same month of the previous year. Primary income recorded net outflow of USD 544 million decreasing by USD 615 million compared to the same month of the previous year. Secondary income recorded net inflow of USD 197 million increasing by USD 106 million compared to the same month of the previous year.”

 

With regards the related Financial Account, the Central Bank’s analysis was as follows :

“Direct investment recorded a net inflow of USD 437 million. Portfolio investment recorded a net outflow of USD 607 million. As regards to sub-items through liabilities, non-residents’ equity securities recorded net sales of USD 322 million, while government domestic debt securities transactions recorded net purchase of USD 424 million. Regarding the bond issues in international capital markets, banks realized net borrowing of USD 92 million. Under other investment, banks’ currency and deposits within their foreign correspondent banks increased by USD 512 million, while non-resident banks’ deposits held within domestic banks decreased by USD 952 million, on net basis. Regarding the loans provided from abroad, banks realized net borrowing of USD 805 million, while General Government and other sectors realized net repayments of USD 48 million and USD 396 million, respectively. Official reserves recorded net outflow of USD 3,631 million.”

 



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