Turkey's IIP deficit reached $252.9 billion in June

The net International Investment Position (IIP) deficit, defined as the difference between Turkey's assets abroad and its liabilities abroad, stood at 252.9 billion dollars as of the end of June 2023. The Central Bank of the Republic of Turkey (CBRT) shared the International Investment Position Developments for June 2023. According to the International Investment Position (IIP) data, as of the end of June 2023, Turkey's assets abroad decreased by 4.8 percent compared to the end of 2022, reaching 293.5 billion dollars, while its liabilities decreased by 10.4 percent, reaching 546.4 billion dollars. Defined as the difference between Turkey's assets abroad and its liabilities abroad, net IIP was -301.6 billion dollars at the end of 2022, and was realized as -252.9 billion dollars at the end of June 2023. Net IIP was recorded as minus 294.6 billion dollars in May. When the assets sub-items are examined, the reserve assets item decreased by 15.7 percent compared to the end of 2022, reaching USD 108.6 billion, while the other investments item increased by 2.0 percent to USD 123.2 billion. Among the other investments sub-items, banks' foreign currency and Turkish lira denominated effectives and deposits increased by 11.6 percent to USD 50.2 billion. 37.7 percent decrease in direct investments When the liabilities sub-items are examined, direct investments (capital and other capital) decreased by 37.7 percent compared to the end of 2022, due to the effects of changes in market value and exchange rates, to USD 118.0 billion. Portfolio investments decreased by 8.2 percent compared to the end of 2022, reaching USD 85.6 billion. The stock of stocks of non-residents decreased by 21.8 percent compared to the end of 2022, reaching 22.5 billion USD, while the stock of government securities owned by non-residents decreased by 29.1 percent to 0.9 billion USD, and the Treasury's bond stock (after deducting the stock of bonds purchased by domestic residents) increased by 4.8 percent to 43.9 billion USD. In the same period, other investments increased by 4.7 percent compared to the end of 2022, reaching 342.9 billion USD. Foreign currency deposits of non-residents in domestic banks increased by 0.6 percent compared to the end of 2022, reaching 41.9 billion USD, while TL deposits increased by 5.3 percent to 14.9 billion USD. While the total loan stock of banks increased by 4.8 percent to 59.7 billion USD, the total loan stock of other sectors decreased by 0.1 percent to 100.3 billion USD.