The current account deficit reached $5.4 billion in July

The Central Bank (CBRT) announced the balance of payments data for July 2023.

Thus, the current account deficit in July amounted to 5,466 million dollars. While the current account deficit was $42.2 billion in the first seven months of the year, the annualized current account deficit rose to $58.5 billion.

Economists’ expectations were $4.5 billion.

The current account balance had a surplus of 674 million dollars in June; A monthly surplus was recorded for the first time since October 2021.

THE FOREIGN TRADE DEFICIT IS 10.4 BILLION DOLLARS

In July, the current account, excluding gold and energy, had a surplus of $717 million.

The foreign trade deficit defined by the balance of payments amounted to 10.4 billion dollars.

Inflows from the balance of services amounted to 5.9 billion dollars. In this area, net income from the travel sector amounted to 4.7 billion dollars.

The primary income balance and secondary income balance items recorded a net outflow of US$ 903 million and US$ 85 million, respectively.

INTRODUCTION TO THE 1.1 BILLION DOLLAR PORTFOLIO

Net direct investment inflows were recorded at US$392 million.

Portfolio investments recorded a net inflow of $1.16 billion. When analyzed by subheadings, it is observed that non-residents made net purchases of 734 million dollars and 18 million dollars in the stock and public debt markets, respectively.

Regarding bond issues abroad, banks had a net debt of 353 million dollars.

In other investments, domestic banks’ cash and deposit assets in their foreign correspondents recorded a net decrease of US$942 million.

INCREASE OF 2.7 BILLION DOLLARS IN OFFICIAL RESERVES

Domestic deposits of foreign banks recorded a net increase of $980 million in total, including a net increase of $1,186 million in foreign currency and a net decrease of $206 million in Turkish lira.

Regarding loans granted from abroad, the General Government, banks and other sectors made net amortizations of USD 35 million, USD 483 million and USD 181 million, respectively.

This month there was a net increase of $2.7 billion in official reserves.