Turkey's Current Account Deficit Falls To $2.0 Billion In January

- Turkey's current account deficit fell by 2.98 billion dollars to 2.0 billion in January, due to a sharp fall in foreign trade deficit in the same period, according to the data released by the Central Bank on Wednesday.

Annual current account deficit fell to 42.87 billion dollars, reflecting 2.64 billion dollars fall in trade deficit as well as 277 million rise in services surplus.

Under services item, transportation item recorded a net inflow of 214 million increasing by 104 million, while the travel item recorded a net inflow of 990 million increasing by 84 million compared to the first month of the previous year.

Direct investment net inflow stood at 1.6 billion dollars, while portfolio investment was at 1.61 billion dollars in the same period.

As regards to subitems through liabilities, non-residents’ equity security transactions recorded net purchases of 462 million, while their government domestic debt securities recorded net sales of 281 million.

Meanwhile, regarding the bond issues in international capital markets, General Government borrowed 1.5 billion, as banks and other sectors borrowed 244 million and 58 million on net basis, respectively.

Other investment recorded a net inflow of 4.27 billion dollars, under other investment, currency and deposits item recorded a net inflow of 3.52 billion dollars.

Specifically, banks’ currency and deposits within their foreign correspondent banks recorded 312 million on net basis, while nonresident banks’ deposits held within domestic banks recorded a net increase of 3.4 billion.

As regards to loans obtained from nonresidents, General Government realized net repayment of 357 million dollars. Meanwhile, banks and other sectors realized a net disbursement of 1.45 billion dollars and 889 million, respectively, mainly owing to short-term loan disbursements.