Minister of Treasury and Finance Mehmet Simsek stated that the annual current account deficit has decreased for eight months. Simsek noted that this decline and external financing will improve foreign exchange reserves.
According to the data of the Central Bank, the current account had a deficit of $4 billion 544 million in March. Minister of Treasury and Finance Mehmet Simsek evaluated the figures on his social media account.
Minister Simsek stated that the decline in the current account deficit, which has been continuing for eight months, is a success of the new program implemented by the government.
“The annual improvement in the current account deficit in March compared to May 2023 was $25.8 billion. This realization implies that the annual current account deficit decreased to approximately 2.7% as a ratio of national income in the first quarter,” said Simsek. He noted that with confidence in the program, the risk premium decreased and access to external financing increased.
The Minister wrote: “Capital inflow, excluding reserves (official and banking), was $20 billion above the annual current account deficit in March. The improvement in our foreign exchange reserves will continue with the decline in the current account deficit and the positive outlook in foreign financing inflows. Thus, macro-financial stability will be further strengthened and a significant contribution will be made to the disinflation process.”
Source: Dunya.com / Prepared by Irem Yildiz