The Turkish Central Bank recorded a USD 2,934 million current account deficit in June 2020, an increase of USD 2,839 on the deficit of USD 95 million for the same month of the previous year.
The Central Bank showed exports as USD 13,222 million and imports at USD 15,269 million in June 2020, giving a trade deficit of USD 2,047 million, a decrease of USD 331 (13.9%) million on the trade deficit of USD 2,378 million of the same month of the previous year. The current account deficit in June 2020 reflects a declining trend since the April high of USD 5,209 million which was the result of the sudden fall in exports in that month caused by the coronavirus pandemic. The subsequent improvement in exports has helped in the gradual improvement of the current account balance.
For the first half of 2020, the current account deficit is USD 19,804 million, compared with a surplus of USD 185 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 2,934 million deficit increasing by USD 2,839 million compared to the same month of the previous year, bringing the 12-month rolling deficit to USD 11,094 million. This development is mainly driven by the net outflow of USD 294 million in services item against a net inflow of USD 3,413 million observed in the same month of the previous year, as well as the net outflow of USD 23 million in the secondary income account against a net inflow of USD 50 million observed in the same month of the previous year. Gold and energy excluded current account indicated USD 181 million surplus, in comparison to USD 2,647 million surplus observed in the same month of the previous year. Investment income under primary income account indicated a net outflow of USD 522 million, decreasing by USD 555 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 3 million. Portfolio investment recorded a net outflow of USD 1,499 million. As regards to sub-items through liabilities, both non-residents’ equity securities and government domestic debt securities transactions recorded net sales of USD 31 million and USD 427 million, respectively. Regarding the bond issues in international capital markets, banks, General Government and other sectors realized net repayments of USD 56 million, USD 2,000 million and USD 7 million, respectively. Under other investment, banks’ currency and deposits within their foreign correspondent banks increased by USD 2,317 million, while non-resident banks’ deposits held within domestic banks decreased by USD 1,511 million, on net basis. Regarding the loans provided from abroad, banks, General Government and other sectors realized net repayments of USD 373 million, USD 192 million and USD 902 million, respectively. Official reserves recorded net outflow of USD 7,707 million.”