Türkiye's external assets slip to $404B as liabilities rise

The Turkish Central Bank reported on Thursday that Türkiye's external assets totaled $404 billion as of end-June, representing a 1.7% decline from the previous quarter amid contractions in portfolio investments and official reserve holdings, according to the authority's quarterly data.

Asset composition shifts

Direct investments among external assets climbed 3.2% quarter-on-quarter to reach $81.2 billion, while portfolio investments declined 11% to $9.1 billion, the bank said. Other investments fell 2.7% to $163.6 billion during the April-June period, with foreign exchange deposits held by resident banks abroad decreasing 7% to $49 billion. The Central Bank's reserve assets dropped 2.2% to $147.4 billion, the statement noted.

Data revision and liabilities

The regulator also revised upward its first-quarter figure for currency and deposits held abroad by resident individuals, adding $12.8 billion to the previous reading. Against this backdrop, Türkiye's liabilities to non-residents rose 3% from the previous quarter to $806.7 billion. Direct investment liabilities fell 0.6% to $231.5 billion, while portfolio investment liabilities climbed 8.8% to $154.8 billion.

Net investment position

Equities and investment fund shares held by non-residents surged 14.6% to $49.7 billion, and other investment liabilities increased 2.9% to $413.4 billion. Consequently, Türkiye's net international investment position — the difference between external assets and liabilities — stood at minus $402.6 billion at the end of June. Financial derivatives were reported as a separate item for the first time, with the net value of derivative contracts standing at minus $4.3 billion.