The Turkish Central Bank recorded a USD 5,062 million current account deficit in April 2020, an increase of USD 4,593 (979.3%) on the deficit of USD 469 million for the same month of the previous year.
The Central Bank showed exports as USD 8,932 million and imports at USD 12,742 million in April 2020, giving a trade deficit of USD 3,810 million, an increase of USD 2,279 (148.9%) million on the trade deficit of USD 1,531 million of the same month of the previous year. The significant trade deficit in April 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 four months of 2020, the current account deficit is USD 12,855 million, an 1,352.5% increase on the deficit of USD 885 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 5,062 million deficit compared to USD 469 million deficit observed in the same month of 2019, bringing the 12-month rolling deficit to USD 3,291 million. This development is mainly driven by USD 2,279 million increase in the goods deficit recording net outflow of USD 3,810 million, as well as a net outflow of USD 240 million in the services item against a net inflow of USD 2,333 million observed in the same month of the previous year. Gold and energy excluded current account indicated USD 3,315 million deficit, in comparison to USD 3,257 million surplus observed in the same month of the previous year. Investment income under primary income account indicated a net outflow of USD 1,036 million, decreasing by USD 111 million compared to the same month of the previous year. The secondary income recorded net inflow of USD 74 million compared to USD 13 million net outflow observed in 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 outflow USD 133 million, compared to USD 433 million inflow observed in the same month of the previous year. Portfolio investment recorded a net outflow of USD 2,365 million. As regards to sub-items through liabilities, both non-residents’ equity securities and government domestic debt securities transactions recorded net sales of USD 847 million and USD 1,013 million, respectively. Regarding the bond issues in international capital markets, banks and other sectors realized net repayments of USD 1,030 million and USD 763 million, respectively. Under other investment, banks’ currency and deposits within their foreign correspondent banks and non-resident banks’ deposits held within domestic banks increased by USD 2,262 million and USD 742 million on net basis, respectively. Regarding the loans provided from abroad, banks, General Government and other sectors realized net repayments of USD 843 million, USD 70 million and USD 62 million, respectively. Official reserves recorded net outflow of USD 8,605 million.”