International investment position declines in October

Turkey's assets abroad increased by 2.7 percent compared to the end of the previous year, to $296.1 billion, while its liabilities increased by 0.4 percent to $545.9 billion. Thus, net IIP, defined as the difference between Turkey's assets and liabilities abroad, was minus $249.8 billion in October. The Central Bank of the Republic of Turkey (CBRT) announced the International Investment Position (IIP) data for the October 2022 period. Accordingly, in October, Turkey's assets abroad increased by 2.7 percent compared to the end of the previous year, to $296.1 billion, while its liabilities increased by 0.4 percent to $545.9 billion. Thus, net IIP, defined as the difference between Turkey's assets and liabilities abroad, was minus $249.8 billion in October. Net IIP was minus $255.3 billion at the end of 2021. The reserve assets item increased by 2.1 percent compared to the end of 2021 to $113.5 billion, while the other investments item increased by 1.0 percent to $122.9 billion. During this period, among the other investments sub-items, banks' foreign currency and Turkish lira denominated effectives and deposits increased by 2.1 percent to $52.6 billion. Direct investments (capital and other capital), due to changes in market value and exchange rates, decreased by 1.2 percent in October compared to the end of 2021 to $139.9 billion. Portfolio investments decreased by 10.1 percent in October compared to the end of 2021 to $86.8 billion. In the same period, the stock of foreign residents increased by 13.6 percent to $20.9 billion, the stock of government securities owned by foreign residents decreased by 64.9 percent to $1.2 billion, and the Treasury's bond stock (after deducting the stock of bonds purchased by domestic residents) decreased by 9 percent to $41.3 billion. Other investments increased by 4.5 percent in October compared to the end of 2021, reaching $319.1 billion. In the same period, foreign currency deposits of foreign residents in domestic banks increased by 12.9 percent to $39.3 billion, while TL deposits increased by 27.2 percent to $12.3 billion. While the total credit stock of banks decreased by 9.6 percent to $59.3 billion, the total credit stock of other sectors increased by 1.8 percent to $98.6 billion.