Headline: Net International Investment Position Shows a Deficit of $318.1 Billion by the End of September

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Headline: Net International Investment Position Shows a Deficit of $318.1 Billion by the End of September

According to the International Investment Position (IIP) data as of the end of September 2024, Turkey's foreign assets increased by 6.7% to 354.8 billion USD compared to the end of 2023, while its liabilities rose by 3.3% to 672.9 billion USD.

The net IIP, defined as the difference between Turkey’s foreign assets and its liabilities, was -318.6 billion USD at the end of 2023 and improved slightly to -318.1 billion USD by the end of September 2024.

In a statement from the Central Bank of the Republic of Turkey (CBRT), it was noted that when examining the components of assets, the reserve assets category increased by 7.9% to 152.1 billion USD compared to the end of 2023, and the other investments category rose by 4.5% to 129.8 billion USD. Among the components of other investments, the foreign currency and Turkish lira deposits of banks increased by 7.4% to 50.0 billion USD.

When examining the components of liabilities, direct investments (capital and other capital) decreased by 1.8% to 190.9 billion USD due to changes in market values and exchange rates compared to the end of 2023.

Portfolio investments increased by 23.6% to 119.1 billion USD compared to the end of 2023. The stock of equities owned by foreign residents rose by 14.2% to 33.7 billion USD, while the stock of government securities owned by foreign residents was 15.8 billion USD, and the stock of bonds held by the Treasury (after deducting the amount held by domestic residents) reached 44.1 billion USD, reflecting an increase of 3.7%.

In the same period, other investments grew by 0.6% to 362.8 billion USD compared to the end of 2023. Foreign residents’ foreign currency deposits in domestic banks decreased by 3.2% to 41.8 billion USD, whereas Turkish lira deposits increased significantly by 27.8% to 21.8 billion USD.

The total loan stock of banks increased by 12.6% to 70.5 billion USD, while the total loan stock of other sectors rose by 1.3% to 102.4 billion USD.