Turkey reported a current account deficit of $2.68 billion for November, a decline of $866 million from the same month a year earlier.
The rolling 12-month current account deficit declined to $14.3 billion, the central bank said on its website on Tuesday. That equates to 1.8 percent of Turkey’s gross domestic product of $795.2 billion reported for the 12 months to September.
Turkey’s current account deficit is narrowing after the lira sank to successive record lows against major currencies last year, rendering the country’s exports more attractive in terms of price. The lira closed November at 13.47 per dollar compared with 7.83 per dollar at the end of November 2020.
The current account, excluding gold and energy, posted a surplus of $2.41 billion compared with a surplus of $1.14 billion in November 2020, the central bank said.
The bank’s official reserves fell by $2.83 billion during the month. Direct investment recorded a net inflow of $359 million and portfolio investment a net outflow of $1.45 billion.
The lira was trading up 0.1 percent at 13.79 per dollar at 10:39 a.m. local time on Tuesday.
The Turkish government is seeking to boost exports to a record $250 billion this year to help drive economic growth and produce a current account surplus. It exported a record $225.4 billion in 2021. But Turkey is reliant on imports to make exported products. On average, more than two-thirds of the value of a finished product is made up of imported goods and materials.
Ahval