18 October 2018•Update: 18 October 2018
By Muhammed Ali Gurtas
ANKARA
Turkey's net international investment position (IIP) showed a recovery in August, Turkish Central Bank (CBRT) said on Thursday.
The data, still negative, slimmed nearly 30 percent from the end of 2017, according to CBRT.
Liabilities against non-residents recorded $551.1 billion with a decrease of 20.6 percent over the same period and assets abroad totaled $226.9 billion, going down 2.5 percent.
As a result, Turkey's net IIP -- the gap between external assets and liabilities amounted to minus $324.2 billion as of August, while the figure was minus $461.7 billion at the end of last year.
According to the CBRT, the IIP is a monthly statistical statement that shows at a point in time the stock value of financial receivables and liabilities of residents of an economy from residents of another economy, and financial assets kept as gold.
"In other words, the net position of total claims of Turkey on non-residents vis-a-vis total liabilities of Turkey to non-residents is the net IIP," the bank said, noting that the figure may either be positive or negative.
As a sub-item under assets, reserve assets fell by 17.5 percent to $88.9 billion as of August, while other investments were $86.4 billion marking an increase of 13 percent.
"Currency and deposits of banks, one of the sub-items of other investment, recorded $44.6 billion indicating an increase of 27.6 percent compared to the end of 2017," the CBRT said.
Including equity capital and other capital, direct investments under liabilities were $99.2 billion -- down 49.3 percent -- "with the contribution of the changes in the market value and foreign exchange rates".
"Foreign exchange deposits of non-residents held within the resident banks recorded $37 billion at the end of August 2018, reflecting an increase of 1.3 percent compared to the end of 2017, and Turkish lira deposits decreased by 21.9 percent recording $10.3 billion," according to the bank.
The average USD/TRY exchange rate was 5.74 in August, while the eight-month average rate was around 4.38 and one dollar was traded for 3.65 liras on average last year.
"Total external loan stock of the banks recorded $90.4 billion decreasing by 4.7 percent compared to the end of 2017, and total external loan stock of the other sectors recorded $109.6 billion increasing by 1.3 percent," the CBRT added.
