The Central Bank of the Republic of Turkey (CBRT) announced that its net international investment position had a deficit of $227.5 billion in March. According to the statement made by the CBRT, Turkey’s foreign assets amounted to $286.5 billion with a decrease of 2.5 percent compared to the end of 2021, while its liabilities amounted to $514.0 billion with a decrease of 1.7 percent.
The net IIP, defined as the difference between Turkey’s foreign assets and its liabilities abroad, was -228.8 billion dollars at the end of 2021, while it was -227.5 billion dollars at the end of March 2022.
When the sub-items of assets are analyzed, the reserve assets item decreased by 4.7 percent compared to the end of 2021 to reach 105.9 billion dollars, while the other investments item decreased by 0.6 percent to 121.1 billion dollars. Banks’ foreign currency and Turkish lira-denominated effective and deposits, which are among the sub-items of other investments, increased by 5.4 percent to 54.3 billion dollars.
When the liabilities sub-items are analyzed, direct investments (capital and other capital) decreased by 12.1% compared to the end of 2021 and amounted to 107.2 billion dollars, due to the changes in market value and exchange rates.
Portfolio investments decreased by 5.2 percent compared to the end of 2021 and fell to 91.0 billion dollars. The bond stock of the Treasury (after deducting the stock of bonds purchased by residents) decreased by 4.7 percent to $ 43.2 billion, with a decrease of 1.1 percent.
In the same period, other investments increased by 3.6 percent compared to the end of 2021 and reached 315.8 billion dollars. Foreign currency deposits of non-residents in domestic banks increased by 3.0 percent compared to the end of 2021 and became 35.9 billion dollars, while TL deposits increased by 21.7 percent to 11.8 billion dollars.
While the total loan stock of banks decreased by 1.4 percent to 65.7 billion dollars, the total loan stock of other sectors increased by 0.3 percent to 97.1 billion dollars.