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Turkiye’s Net International Investment Position Deficit Widens in March

Turkiye’s net international investment position (IIP) deficit expanded to minus $317.6 billion in March, up from minus $284.7 billion at the end of 2023, with foreign assets totaling $317 billion and liabilities reaching $634.7 billion.

The Central Bank of the Republic of Turkiye (CBRT) reported that in March 2024, Turkiye’s foreign assets decreased by 3.7% compared to the previous year, while liabilities increased by 3.4%. Notably, reserve assets decreased by 12.6%, reaching $123.1 billion, while other investments rose by 3% to $127.2 billion, driven by an increase in banks’ effective deposits in foreign currency and Turkish lira.

Direct investments surged by 11% to $175.9 billion, attributed to changes in market value and exchange rates.

PORTFOLIO INVESTMENTS REACHED $102.8 BILLION

Portfolio investments surged by 7.2% year-on-year by the end of March, totaling $102.8 billion. Non-residents’ holdings of shares soared by 15.4% to $34.1 billion, while their ownership of Government Domestic Debt Securities declined by 9.5% to $2.4 billion. Meanwhile, the Treasury’s bond stock, net of purchases by domestic residents, rose by 1.4% to $43.1 billion.

Other investments witnessed a 1% decrease to $356 billion during the period. Non-residents’ foreign currency deposits in domestic banks fell by 3.2% to $41.8 billion, while TL deposits surged by 10.2% to $18.8 billion.

Bank credit stock increased by 0.7% to $62.9 billion, while the total credit stock of other sectors dipped by 1.4% to $99.7 billion.

Source: NTV / Prepared by Irem Yildiz

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