Lira sends Turk­ish cur­rent ac­count into sur­plus

Gulf Times Business - - FRONT PAGE -

An em­ployee holds a wad of 200 Turk­ish lira ban­knotes in a cur­rency ex­change in Turkey. The lira’s slump two months ago wasn’t all bad news. Turkey’s cur­rent-ac­count balance posted its big­gest monthly sur­plus on record in Au­gust, the first time there was no deficit since Septem­ber 2015, ac­cord­ing to cen­tral bank data pub­lished yes­ter­day. The cur­rent-ac­count sur­plus was $2.6bn, slightly higher than what econ­o­mists in a Bloomberg sur­vey were ex­pect­ing and a re­ver­sal from a $1bn deficit a year ear­lier. The monthly fig­ure brought Turkey’s 12-month trail­ing deficit to $51.1bn, or more than 5% of the coun­try’s gross do­mes­tic prod­uct. While that would make Turkey’s for­eign im­bal­ance one of the high­est as a ra­tio of out­put among the Group of 20 coun­tries, the deficit is clearly nar­row­ing. The an­nual gap will equal just over 4% of GDP by the end of next year as Turk­ish trade and tourism get a boost from a weak cur­rency, ac­cord­ing to Halk Yatirim economist Banu Kivci Tokali in Is­tan­bul. “The cur­rent for­eign-ex­change rate, the level of oil prices and signs of a slow­down in the econ­omy in line with our ex­pec­ta­tions in­di­cate that the im­prove­ment in Turkey’s cur­rent ac­count will con­tinue,” Tokali said by e-mail.

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