So is this where Turkey ends up? Balance of payments figures out on Tuesday show that the country had a $5.6bn current account deficit for the month of January.
While broadly in line with expectations that seems to confirms a pattern some may find unsettling: a year of big falls in the deficit has come to an end, and the still hefty monthly total is overwhelmingly financed by portfolio funds rather than foreign direct investment. Continue reading »
That was quite a drop.
Turkey’s current account deficit, seemingly all but out of control in 2011, plunged in 2012. According to central bank statistics released on Wednesday, the total fell from $77.2bn in 2011, just about the highest in the world outside the US, to $48.9bn last year. Continue reading »
Turkey is borrowing at the cheapest rates in its history, as demand for the country’s debt continues to push yields down for both foreign and domestically denominated issues.
On Wednesday, the country’s treasury said it had issued $1bn in long-term dollar-denominated debt at its lowest ever cost: just 4.352 per cent yield for a 29-year bond. It came as benchmark two-year domestically denominated debt also broke new records, reaching yields of 5.7 per cent – more than 500 basis points down for the year so far. Continue reading »
Turkey on Thursday reported its 10th successive monthly decline in the current account deficit, raising hopes that the country is achieving results in efforts to put its volatile economy on a more stable footing.
The deficit narrowed in August to $1.2bn, its lowest since 2009 and well below market forecasts of $1.6bn, making the cumulative deficit for the year $36.1bn versus $54.2bn for the same months last year. It’s all enough to have analysts looking forward to a possible credit re-rating – and promotion to investment grade. Continue reading »
News that Turkey succeeded in trimming $2bn of its current account deficit (CAD) in May might sound like cause for celebration.
But while a reduction in cumulative CAD from $69bn to $67bn between April and May has been greeted warmly by analysts none are under any illusion that it represents a final turning of the corner. Continue reading »