Republic of Turkey Central Bank Balance of Payments - June 2017

BALANCE OF PAYMENTS: JUNE 2017

The current account deficit decreased by USD 1,201 million compared to June of the previous year, coming in at USD 3,763 million. As a result, the twelve-month current account deficit stood at USD 34,340 million.

This development was driven by the foreign trade deficit in the balance of payments table decreasing by USD 670 million compared to the same month of the previous year to USD 4,573 million, and net revenues stemming from the services balance increasing by USD 491 million to USD 1,678 million.

Net revenues stemming from the travel item under the services balance increased by USD 323 million compared to the same month of the previous year to USD 1,391 million.

Net outflows stemming from the investment income item under the primary income balance increased by USD 115 million compared to the same month of the previous year to USD 1,071 million.

Inflows stemming from the Secondary Income Balance item increased by USD 178 million compared to the same month of the previous year to USD 282 million.

Net inflows stemming from direct investments (net increase in liabilities) were USD 706 million in June of the previous year, while in the same period this year a net outflow (net decrease in liabilities) of USD 515 million was recorded.

Portfolio investments recorded a net inflow (net increase in liabilities) of USD 4,206 million. When examined by sub-items, it is observed that non-residents made net purchases of USD 693 million in the equity market and USD 1,221 million in the domestic government debt securities market.

Regarding bonds and bills issued abroad, the General Government and banks carried out net borrowing of USD 1,121 million and USD 1,420 million, respectively.

In other investments, a net inflow (net increase in liabilities) of USD 2,051 million occurred.

Under other investments, the foreign currency and deposit assets of domestic banks held with their correspondents abroad recorded a decrease of USD 117 million, while the deposits of foreign banks held domestically recorded a net increase of USD 1,392 million.

Regarding loans obtained from abroad, the General Government and other sectors carried out net repayments of USD 179 million and USD 441 million, respectively, while banks carried out net usage of USD 704 million.

An increase of USD 2,968 million was observed in official reserves.