REBALANCING?

NET INTERNATIONAL INVESTMENT POSITION IMPROVED IN NOVEMBER

Turkey’s net international investment position (NIIP) continued to improve in November 2018, down 22 percent compared to the end of 2017, according to data released by the Turkish Central Bank on January 25. “The NIIP, the difference between Turkey’s external assets and liabilities, posted minus $357.5 billion at the end of November 2018, in comparison to minus $462 billion at the end of 2017,” the Bank said.

The country’s assets abroad rose by 0.4 percent to reach $233.8 billion while liabilities against non-residents hit $591.2 billion, indicating a decrease of 14.9 percent during the same period.

When asset sub-items are analyzed, reserve asset items decreased by 15.5 percent compared to the end of 2017, coming in at $91 billion while other investment items increased by 18.9 percent, reaching $90.9 billion. Banks’ foreign currency and Turkish lira denominated assets and deposits increased by 34.4 percent to $47 billion.

When liabilities were analyzed, direct investments (capital and other capital) decreased by 33.9 percent compared to the end of 2017, reaching $129.5 billion with the effect of changes in market capitalization and exchange rates.

Portfolio investments decreased by 16,9 percent compared to year-end 2017 and reached $144 billion. Non-residents’ equity stock decreased by 39.6 percent to $31.4 billion compared to the end of 2017 while government securities held by foreign residents decreased by 37.4 percent to $19.4 billion. The treasury’s bond stock was came in at $49 billion, a 10.5 percent increase.

Reserve assets shrunk 15.5 percent to $91 billion while other investments totaled $90.9 billion, up 18.9 percent. “Currency and deposits of banks, one of the sub-items of other investments, were $47 billion, indicating an increase of 34.4 percent compared to the end of 2017,” the Bank noted.

Direct investment - equity capital plus other capital

- at the end of November 2018 fell to $129.5 billion, a decrease of 33.9 percent from the end of 2017.

Lenders’ total external loan stock slipped to $83.1 billion last November, down 12.4 percent compared to the end of 2017.

“Total external loan stock of other sectors recorded $110.1 billion, increasing 1.6 percent.”