NEWS ECONOMY NEWS        11/09/2020

Turkey’s current account deficit is USD 1.8 billion in July 2020

The Turkish Central Bank recorded a USD 1,817 million current account deficit in July 2020, a negative increase of USD 3,807 on the surplus of USD 1,990 million for the same month of the previous year.

 

The Central Bank showed exports as USD 14,850 million and imports at USD 16,703 million in July 2020, giving a trade deficit of USD 1,859 million, a decrease of USD 419 million (18.4%) on the trade deficit of USD 2,278 million of the same month of the previous year. The current account deficit in July 2020 reflects a declining trend since the April high of USD 5,211 million which was the result of the sudden fall in exports in that month caused by the coronavirus pandemic..  

 

For the first seven months of 2020, the current account deficit is USD 21,629 million, compared with a surplus of USD 2,142 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 1,817 million deficit compared to USD 1,990 million surplus observed in the same month of 2019, bringing the 12-month rolling deficit to USD 14,941million. This development is mainly driven by the net inflow of USD 288 million in services item decreasing by USD 4,617 million compared to the same month of the previous year, as well as the net inflow of USD 80 million in the secondary income decreasing by USD 55 million. On the other hand, the good deficit recorded net outflow of USD 1,853 million decreasing by USD 425 million. Gold and energy excluded current account indicated USD 2,095 million surplus, in comparison to USD 5,349 million surplus observed in the same month of the previous year. Primary income recorded net outflow of USD 332 million decreasing by USD 440 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 226 million. Portfolio investment recorded a net inflow of USD 254 million. As regards to sub-items through liabilities, both non-residents’ equity securities and government domestic debt securities transactions recorded net sales of USD 467 million and USD 390 million, respectively. Regarding the bond issues in international capital markets, banks realized net borrowing of USD 579 million. Under other investment, banks’ currency and deposits within their foreign correspondent banks decreased by USD 1,208 million, while non-resident banks’ deposits held within domestic banks increased by USD 1,168 million, on net basis. Regarding the loans provided from abroad, other sectors realized net repayments of USD 508 million, while banks and General Government realized net disbursements of USD 73 million and USD 37 million, respectively. Official reserves recorded net outflow of USD 1,283 million.”



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