Page 28 - TURKRptSep21

$16.4bn, while imports moved up 17% y/y to $20.7bn. In January-July, the deficit was down 5% y/y to $26bn.
Turkey’s machinery exports amounted to $13bn in January-July. Sector exports are expected to reach $9bn during the last five months of 2021.
5.1.2 Current account dynamics
Turkey’s 12-month rolling current account deficit declined to $29.7bn in June from $31.6bn in May, although it remained elevated at around 4.0% of GDP.
The current account balance recorded a $1.1bn gap in June.
Key factors were the deficits in the goods balance ($1.6bn) and the primary income balance ($1.0bn) and a services balance surplus ($1.5bn), with the latter buoyed by improved tourism flows and transportation revenues.
The secondary income balance showed a negligible deficit.
Including high net errors & omissions at $2.9bn, the monthly current account balance and the capital account, the official reserves jumped by $8.8bn for the biggest monthly increase in more than three decades.
5.1.3 Gross intl reserves
Turkey received on August 23 about $6bn SDRs from the IMF’s reserve allocation. It also signed on August 12 a $2bn swap deal with Korea.
The central bank currently has $23bn worth of local currency deposits in its accounts via swap agreements, including $15bn of riyals from Qatar, $6bn of yuan from China and $2bn of won from South Korea.
Additionally, it has about $45bn via hard currency swaps with domestic banks.
As of August 6, the chart below by @VeFinans showed that the central bank’s gross reserves stood at $109bn, net reserves stood at $25.2bn and net reserves when swaps are excluded stood at minus $41.2bn.
Recently, there has been some recovery in the net reserves thanks to Treasury and other public institutions making eurobond sales and external loans along with rediscount credit payments by exporters in recent months. However, this does not change the reality that the net reserves remain in the deep red, while eurobond sales and external loan news ceased in August.
28 TURKEY Country Report September 2021 www.intellinews.com