Turkey: Net int'l investment position improves in Oct.

Difference between Turkey's external assets and liabilities in October was minus $335.1B, down from end-2017

Turkey: Net int'l investment position improves in Oct.

By Tuba Sahin


Turkey's net international investment position (NIIP) continues to improve in October, shrinking 27.5 percent compared to the end of 2017, the Turkish Central Bank reported on Tuesday.

The gap between Turkey’s assets abroad and liabilities -- the NIIP -- was minus $335.1 billion in October while it was minus $461.9 billion at the end of last year, according to the report.

"External assets recorded $230.3 billion indicating a decrease of 1.1 percent compared to the end of 2017 and liabilities against non-residents recorded $565.4 billion indicating a decrease of 18.6 percent," the bank said in a statement.

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 nation’s government, the private sector, and its citizens.

Reserve assets decreased 20 percent to $86.2 billion, while other investment saw an increase of 20.9 percent to reach $92.4 billion during the same period.

"Currency and deposits of banks, one of the sub-items of other investment, recorded $49.2 billion indicating an increase of 40.6 percent compared to the end of 2017," the bank said. On the liabilities side, direct investment -- equity capital plus other capital -- totaled at $112.6 billion, falling 42.5 percent in the same period "with the contribution of the changes in the market value and foreign exchange rates," it added.

From January to October, the average U.S. dollar/Turkish lira exchange rate was around 4.81, while last year one dollar was exchanged for 3.65 Turkish liras on average.

The bank added that banks' external loan stock totaled $83.8 billion in the month, decreasing 11.7 percent from the end of 2017, and the total external loan stock of other sectors totaled $109.3 billion, up 1 percent.

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