Net investment position reaches negative $415.9 bln

22nd, 2014
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The net international investment position (NIIP) of Turkey had reached negative $415.9 billion by the end of August, ballooning by $22.3 billion in the first eight months of the year, according to data released by the Turkish Central Bank on Wednesday.

Turkey’s NIIP — the gap between an economy’s external financial assets and liabilities — had been minus $393.6 billion at the end of 2013. According to the latest data, Turkey’s foreign assets increased by 2.9 percent to $232 billion at the end of August compared with the end of 2013, while its liabilities had increased by 4.6 percent to $647.9 by the end of July. Regarding the main asset groups, reserve assets increased by $3.1 billion to $134.1 billion, and “other” investments decreased by $818 billion to $59.5 billion in the same period. In terms of the main liability groups, nonresidents’ direct investment in Turkey in the form of equity capital and other capital surged 6.5 percent to $159 billion at the end of August of this year compared with the end of 2013. The increase was caused mostly by changes in market value and the foreign exchange rate, according to the central bank’s report.

At the same time, portfolio investments as of the end of July rose by $20.9 billion over 2013 at year’s end. In addition, the value of stock owned by nonresidents increased by 20.9 percent to $63.3 billion. “Other” investments declined by $1.9 billion over the same period. Foreign currency deposits of nonresidents in domestic banks showed a 0.9 percent decrease, to $36.3 billion, at the end of August. Turkish currency deposits increased by 5.7 percent to $11.7 billion.

The total of Turkey’s short-term external debt maturing within one year also reached $166.6 billion at the end of August, according to a Tuesday report from the central bank.

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