Turkey's foreign assets increase to $378 billion in July, with the net investment gap expanding
Türkiye's economy saw a series of changes in July 2021, as revealed in the latest financial data. Here's a breakdown of the key developments:
The country's total external assets stood at an impressive $378.4 billion at the end of the month, marking a 4.2% increase compared to June. This growth was driven by a variety of factors, including a 12.9% rise in reserves held by the country's central bank, which now stand at $169.2 billion.
However, the central bank's gross international reserves slipped to $177.9 billion in the week ending Sept. 12. This decrease was due to a fall in foreign exchange reserves, which dropped $4.68 billion to $84.5 billion. Excluding swap agreements, net reserves also decreased from $54.4 billion to $51.8 billion.
In the realm of liabilities, other investments inched up 0.7%, while direct investments under liabilities totaled $220.5 billion, down 6% due to a rise in the BIST 100 index. Foreign investors continued their exit from Turkish equities, pulling $164.9 million in the week ending Sept. 12.
On the assets side, portfolio investments stood at $4.4 billion. Unfortunately, other investments under assets fell 3.6% to $134.3 billion. Direct investments under assets reached $70.6 billion, up 1.1% from June. However, private-sector bond holdings declined from $835.4 million to $665.5 million.
Türkiye's card scheme TROY is expanding its reach, targeting Turkic states overseas. However, the specific countries TROY has targeted in its foreign expansion remain undisclosed.
Foreign holdings of government domestic debt securities rose from $14.49 billion to $15.08 billion. This increase was counterbalanced by a significant boost in gold reserves, which increased $2.43 billion to $93.36 billion due to rising gold prices.
Lastly, foreign exchange deposits of resident banks abroad dropped 13.2% year-over-year to $40.9 billion. As a result, Türkiye's net international investment position (NIIP) is currently at -$343.9 billion, a decrease from June.
This snapshot provides a glimpse into Türkiye's economic landscape in July 2021. As always, more detailed analysis and updates will be provided as data becomes available.
