Turkey's current account surplus at $566M in July

Duvar English

Turkey's current account surplus rose to $566 million in July, exceeding market expectations, according to data by the country's central bank on Sept. 12.

This marked an increase from (revised) $330 million surplus in June and a shift from a $5.5 billion deficit in July 2023.

Excluding gold and energy, the current account posted a surplus of $4.9 billion for the month. The goods deficit in July reached $5.2 billion, while the services sector posted a net surplus of $6.9 billion, with the travel category contributing a net inflow of $5.6 billion.

For the January-July period, the current account balance showed a $16.1 billion deficit.

In July, direct investment recorded a net inflow of $670 million.

Portfolio investment also showed a strong performance with a net inflow of $3.726 million. Within the sub-items of liabilities, non-residents' transactions in equity securities registered net sales of $21 million, while government domestic debt securities saw net purchases of $2.479 million.

Additionally, official reserves increased by $5.366 million.

Şimşek: 'Foreign resource inflows contribute to permanent reserve accumulation'

Commenting on the new figures, Treasury and Finance Minister Mehmet Şimşek said, "Declining current account deficit and increasing foreign resource inflows contribute to permanent reserve accumulation."

The minister stated that the highest monthly portfolio inflow in 10 years occurred in July while the total inflow in the last year was 34.5 billion dollars.

"We aim to make the current achievements in macroeconomic and financial stability permanent and to take them even further with structural reforms. We will continue our efforts to attract international direct investments to our country, especially those that accelerate technological transformation, increase competitiveness and improve financing quality," he noted.