Turkey's April Current Account Balance in 5,06 Billion Dollars of Deficit

Photo: publicdomainimages.net

Turkey's current account balance posted a gap of 5.062 billion dollars in April, widening from a 469 million dollar deficit in the same month last year, the Central Bank announced today (June 12).

According to the balance of payments figures released by the bank, the country's 12-month rolling deficit totaled 3.3 billion dollars.

The figure beat market expectation of a deficit of 4.1 billion dollars in the month as the coronavirus' impact started to be felt in earnest in mid-March and April.

A survey by the state-run Anadolu Agency showed that a group of 16 economists' projections ranged from 2.2 billion dollars to 5.2 billion dollars for the fourth month of this year.

The survey also revealed the end-2020 current account balance is forecast to register a deficit of 10.9 billion dollars.

Here are some facts on the current account balance stated by the Central Bank:

• Investment income under primary income account indicated a net outflow of 1,036 million dollars, decreasing by 111 million dollars compared to the same month of the previous year.
• The secondary income recorded a net inflow of 74 million dollars compared to 13 million dollars net outflow observed in the same month of the previous year.
• Direct investment recorded a net outflow of 133 million dollars, compared to 433 million dollars of inflow observed in the same month of the previous year.
• Portfolio investment recorded a net outflow of 2,365 million dollars. As regards to sub-items through liabilities, both non-residents' equity securities and government domestic debt securities transactions recorded net sales of 847 million dollars and 1,013 million dollars, respectively.
• Regarding the bond issues in international capital markets, banks and other sectors realized net repayments of 1,030 million and 763 million dollars, respectively.
• Under other investments, banks' currency and deposits within their foreign correspondent banks and nonresident banks' deposits held within domestic banks increased by 2,262 million and 742 million dollars on a net basis, respectively. (VK)