Increase in net reserves encouraging, says Şimşek

ANKARA

The Turkish Central Bank’s international reserves rose from $98.5 billion on May 26 to $108.6 billion on June 30, while the net reserves improved by $14.2 billion over the same period, Treasury and Finance Minister Mehmet Şimşek said on July 11. 

“One of our program’s important goals is to accumulate international reserves as market conditions allow,” he wrote on Twitter, adding that the rapid increase in reserves witnessed recently is encouraging.

“In addition to the rational policies that will contribute to the increase in the Central Bank's reserves, our efforts to provide additional foreign resources to our country are ongoing. We will take the necessary steps for the continuation of the recovery,” Şimşek added.

Meanwhile, Türkiye’s current account deficit rose from $5.4 billion in April to $7.93 billion in May, according to official data.

Excluding gold and energy, the current account indicated a net deficit of $1.2 billion, the Central Bank said on July 11.

Exports and imports stood at $21.3 billion and $31.8 billion, leading to a foreign trade deficit of $10.48 billion in May.

The travel item recorded a net inflow of $ 3.05 billion.

“Direct investments recorded a net inflow of $89 million, while portfolio investment recorded a net outflow of $141 billion,” the bank said.

Non-residents’ transactions on equity securities and government domestic debt securities showed net sales of $630 million and $90 million, respectively.

Non-resident banks’ deposit accounts held within domestic banks decreased by $4 million, with an increase of $59 million in foreign currency and a decrease of 63 million in Turkish Lira accounts.

The current account deficit widened from $26.24 billion in January-May last year to $37.7 billion in the same period of 2023.

The annualized current account deficit stood at $59.96 billion in May, rising from $57.86 billion in the previous month.