Page 18 - TURKRptMar21 2

Tourism revenues plummeted to $12bn in 2020, down from $35bn in 2019.
The number of international air passengers passing through Turkish airports plunged 79% y/y to 1.9mn in January.
5.1.3 Capital flight dynamics
In January, foreigners bought $2.7bn worth of EM equities, excluding China, and $29.5bn worth of EM bonds, excluding China.
Through eurobonds, foreign investors have bought a nominal $8bn worth of Turkish papers while the market value of their Turkish eurobond holdings has risen $14bn since end-October.
Overall portfolio inflows (equities + domestic government bonds + swaps + eurobonds) total around $30bn.
The balance of payments data suggested $10bn of financial inflows and $3bn via net errors and omissions in November and December.
The current account deficit remained at more than $3bn in each month, totalling $7bn.
As a result, the international reserves moved up $7bn.
Loan renewals continue but no significant net inflows or outflows are seen here.
Turkey: Non-residents' holdings of equity and government domestic debt securities ($ mn) (Market Value)
2017
2018
2019
2020
Feb-19
since Nov 6
STOCK
Equity
51,984
29,350
32,422
29,048
31,378
31,378
GDDS
30,942
18,325
15,448
8,598
10,475
10,475
Repo
2,403
314
513
1,850
1,969
1,969
Private
959
612
406
225
289
289
NET TRANSACTIONS (Adjusted for Foreign Exchange and Market Price Effects)
Equity
3,324
-1,039
414
-4,280
-661
909
GDDS
7,383
-906
-3,121
-5,006
1,389
3,999
Repo
268
-1,391
174
1,439
76
1,727
Private bond
40
-343
-207
-181
64
77
SWAPS
Swaps
3,709
15,618
5.1.4 Gross intl reserves
The gross central bank reserves rose by $11bn to $96bn on February 5 from $84bn at end-October.
However, the net reserves declined by $5bn to $14bn since swaps declined by $8bn to $59bn on February 5 to allow banks to swap USD/TRY in London.
18 TURKEY Country Report March 2021 www.intellinews.com