Turkey's Net IIP Reaches -$318.1 Billion
The Central Bank of the Republic of Turkey (CBRT) published the International Investment Position (IIP) report as of September 2024. According to this report, significant changes were observed in Turkey's foreign assets and liabilities.
Foreign Assets Up by 6.7% As of the end of September 2024, Turkey's foreign assets increased by 6.7% compared to the end of 2023, reaching $354.8 billion. During the same period, liabilities rose by 3.3%, reaching $672.9 billion. In light of these figures, Turkey’s net IIP stood at -$318.1 billion. This value was -$318.6 billion at the end of 2023, indicating a slight improvement towards balance compared to the previous year.
Examining the sub-items of assets, reserve assets increased by 7.9% compared to the end of 2023, reaching $152.1 billion. The other investments category grew by 4.5%, reaching $129.8 billion. Banks' foreign currency and Turkish lira-denominated cash and deposits rose by 7.4%, reaching $50 billion.
Liabilities Highlight Portfolio Investments Regarding liabilities, direct investments (equity and other capital) decreased by 1.8% to $190.9 billion, influenced by changes in market value and exchange rates. On the other hand, portfolio investments saw a significant increase, rising by 23.6% to $119.1 billion. The stock of equities held by foreign residents increased by 14.2% compared to the end of 2023, reaching $33.7 billion, while the stock of government bonds owned by foreign residents stood at $15.8 billion, and the Treasury's bond stock increased by 3.7% to $44.1 billion.
During the same period, other investments increased by 0.6% compared to the end of 2023, reaching $362.8 billion. Foreign deposits held by domestic banks decreased by 3.2%, falling to $41.8 billion. In contrast, Turkish lira deposits showed a significant increase of 27.8%, reaching $21.8 billion.
Significant Increase in Credit Stocks The total credit stock of banks increased by 12.6%, reaching $70.5 billion. The increase in the total credit stock of other sectors was 1.3%, amounting to $102.4 billion. These figures indicate noticeable improvements in Turkey's international investment position. The increase in credit stocks particularly signifies the resilience of the financial sector and has positively reflected in general economic indicators.