The Turkish Central Bank recorded a USD 3,764 million current account deficit in May 2020, a negative increase of USD 4,835 on the surplus of USD 1,071 million for the same month of the previous year.
The Central Bank showed exports as USD 9,638 million and imports at USD 12,372 million in May 2020, giving a trade deficit of USD 2,734 million, an increase of USD 2,389 (692.5%) million on the trade deficit of USD 345 million of the same month of the previous year. The trade deficit in May 2020, which was the result of the fall in exports caused by the coronavirus pandemic, was the main reason behind the deterioration in the current account balance in this month.
For the first five months of 2020, the current account deficit is USD 16,720 million, compared with a surplus of USD 187 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 3,764 million deficit compared to USD 1,071 million surplus observed in the same month of 2019, bringing the 12-month rolling deficit to USD 8,244 million. This development is mainly driven by USD 2,389 million increase in the goods deficit recording net outflow of USD 2,734 million, as well as a net outflow of USD 33 million in the services item against a net inflow of USD 2,907 million observed in the same month of the previous year. Gold and energy excluded current account indicated USD 1,847 million deficit, in comparison to USD 4,345 million surplus observed in the same month of the previous year. Investment income under primary income account indicated a net outflow of USD 920 million, decreasing by USD 399 million compared to the same month of the previous year. The secondary income account indicated a net outflow of USD 28 million, decreasing by USD 36 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 118 million increasing by USD 36 million observed in the same month of the previous year. Portfolio investment recorded a net outflow of USD 2,539 million. As regards to sub-items through liabilities, both non-residents’ equity securities and government domestic debt securities transactions recorded net sales of USD 1,009 million and USD 986 million, respectively. Regarding the bond issues in international capital markets, banks, General Government and other sectors realized net repayments of USD 60 million, USD 2,171 million and USD 448 million respectively. Under other investment, banks’ currency and deposits within their foreign correspondent banks decreased by USD 488 million, while non-resident banks’ deposits held within domestic banks increased by USD 619 million, on net basis. Regarding the loans provided from abroad, banks, General Government and other sectors realized net repayments of USD 402 million, USD 117 million and USD 878 million, respectively. Official reserves recorded net inflow of USD 2,717 million.”