Minister expects lower 12-month current account deficit in February

ANKARA

Türkiye’s 12-month cumulative current account deficit probably shrank further in February, according to Trade Minister Ömer Bolat.

“When the data for February is released, we will see the annualized current account deficit decline to around $32 billion,” Bolat said.

He noted that the country’s 12-month rolling foreign trade deficit dropped from $122 billion in May 2023 to $93 billion in February this year.

“The 12-month cumulative current account deficit, on the other hand, fell from $60 billion in May last year to $37.5 billion January,” Bolat said in a speech at an event organized by the business association MÜSİAD.

The $37.5 billion of deficit recorded in January was the lowest 12-month cumulative current account gap since August 2022.

The current account posted a deficit of $2.56 billion in February, according to the latest numbers of the Central Bank.

In the medium-term program unveiled in September last year, the government forecast a current account deficit of $34.7 billion for 2024. It expects the deficit to shrink to $31.7 billion next year and further down to $30 billion in 2026.

Meanwhile, the bank reported on March 21 that Türkiye’s official international reserves declined by 4 percent from January to stand at $128.5 billion in February.

Foreign currency reserves decreased by 8.2 percent within the same period to $71.6 billion, while gold reserves increased by 2.2 percent to $49.4 billion.

Outstanding FX and gold liabilities arising from the bank’s swap transactions with resident and non-resident banks recorded $67.2 billion, of which $19.4 billion is due in one month, the bank said.