NEWS Finance        20/11/2023

Turkey’s net international investment position is minus USD 298.3 billion as of September 2023

The Turkish Central Bank (TCMB) has reported Turkey's net international investment position (IIP) as of September 30th, 2023 as minus USD 298.3 billion, a decrease of 5.8% on its figure of minus USD 316.7 billion recorded as of 2022 yearend.   


As of the end of September 2023, the Central Bank has reported external assets as USD 304 billion, a decrease of 1.4% on its figure as of 2022 yearend.


Showing a snapshot in time, the NIIP, which can be either positive or negative, is the value of overseas assets owned by a nation, minus the value of domestic assets owned by foreigners, including overseas assets and liabilities held by a country’s government, the private sector, and its citizens.


The Bank gave the following analysis of Turkey’s international investment position (IIP) as of September 2023:


“International Investment Position Developments – September 2023


According to the International Investment Position (IIP) at the end of September 2023, external assets recorded USD 304.0 billion indicating a decrease of 1.4 percent compared to the end of 2022 and liabilities against non-residents recorded USD 602.4 billion indicating a decrease of 3.6 percent.


The net IIP, defined as the difference between Türkiye’s external assets and liabilities, posted USD -298.3 billion at the end of September 2023, in comparison to USD -316.7 billion observed at the end of 2022.


As regards to sub-items under assets, at the end of September 2023, reserve assets recorded USD 122.2 billion indicating a decrease of 5.1 percent, while other investment recorded USD 119.1 billion indicating a decrease of  1.4 percent compared to the end of 2022. Currency and deposits of banks, one of the sub-items of other investment, recorded USD 46.4 billion indicating an increase of 3.1 percent compared to the end of 2022.


As regards to sub-items under liabilities, direct investment (equity capital and other capital) at the end of September 2023 recorded USD 163.3 billion indicating 20.2 percent decrease in comparison to the end of the previous year, with the contribution of the changes in the market value and foreign exchange rates.


Portfolio investment increased by 3.5 percent and recorded USD 96.6 billion compared to the end of 2022. Non-residents’ equity holdings recorded USD 32.1 billion reflecting an increase of 11.4 percent compared to the end of 2022. Non-residents’ holdings of GDDS (Government Domestic Debt Securities) recorded USD 1.2 billion with a decrease of 7.3 percent. Outstanding euro bond holdings of nonresidents posted USD 43.9 billion with an increase of 4.7 percent.


Other investment indicated an increase of 4.7 percent to USD 342.5 billion compared to the end of 2022. FX deposits of non-residents held within the resident banks recorded USD 40.4 billion at the end of September 2023, reflecting a decrease of 2.9 percent compared to the end of 2022, and TL deposits increased by 12.3 percent recording USD 15.9 billion.


Total external loan stock of the banks recorded USD 60.2 billion increasing by 7.7 percent compared to the end of 2022, and total external loan stock of the other sectors recorded USD 100.3 billion decreasing by 0.8 percent.”


Turkey’s net minimum wage has been raised 49% to TL 17,002 (USD 577) as of 01.01.2024       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases marginally to 64.86% in January 2024       Turkey’s official unemployment rate is 8.8% in December 2023       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 85,372,377 as of 2023 yearend       No. of foreigners visiting Turkey in 2023 increases 10.4% to 49.2 million       Turkey’s private sector foreign debt is USD 164.4 billion as of yearend 2023       Turkey’s economy grew 5.5% in 2022       FDI to Turkey is USD 10.6 billion in 2023       Turkey’s current account deficit is USD 45.2 billion in 2023