Turkey's net int'l investment position improves in May

By Gokhan Ergocun

ISTANBUL (AA) - Turkey's net international investment position (NIIP) posted a better performance in May, up 12.2% versus the end of 2018, the country's Central Bank said on Friday.

As of end of May, the NIIP -- the difference between a country's external assets and liabilities -- was minus $323.1 billion, while it was minus $367.9 billion at the end of 2018, the bank reported.

Bank data showed that Turkey's external assets were $239.1 billion, up 4.4% in the same period.

Meanwhile, the country's liabilities against non-residents was around $562.2 billion in May, down 5.8% from the end of last year.

The NIIP -- which can be either positive or negative -- is the value of overseas assets owned by a nation, minus the value of domestic assets owned by foreigners, including overseas assets and liabilities held by a nation’s government, the private sector, and its citizens.

Turkey's reserve assets rose 2.8% to reach $95.6 billion, and other investments in the same period soared 6.7% to reach $94.7 billion.

The sub-item other investments, currency, and bank deposits amounted to $49.4 billion, up 10.6% compared to the end of 2018.

"As regards to sub-items under liabilities, direct investment at the end of May 2019 recorded $117.9 billion, indicating a 17.8% decrease in comparison to the end of the previous year, with the contribution of the changes in the market value and foreign exchange rates," the bank said.

In 2018, the average USD/Turkish lira rate was around 4.82, as one dollar was exchanged for 6.05 liras on average this May.

Total external loan stock of lenders went down to $76.1 billion as of end-May, falling 6.6% from the end of last year.

"Total external loan stock of the other sectors recorded $102.8 billion, decreasing 3.3%," the bank added.