The International Investment Position (IIP) is a monthly statistical statement that shows at a point in time the stock value of financial receivables and liabilities of residents of an economy from residents of another economy, and financial assets kept as gold.
In International Investment position, the difference between total financial assets and total financial liabilities is the net International Investment Position. In other words, the net position of total claims of Turkey on non-residents vis-a-vis total liabilities of Turkey to non-residents is the net International Investment Position. The net position may either be positive or negative.
International Investment Position Developments - May 2018
- According to the International Investment Position (IIP) at the end of May 2018, external assets recorded USD 231.6 billion indicating a decrease of 0.5 percent compared to the end of 2017 and liabilities against non-residents recorded USD 632.5 billion indicating a decrease of 8.6 percent.
- The net IIP, defined as the difference between Turkey’s external assets and liabilities, posted USD -401 billion at the end of May 2018, in comparison to USD -459.2 billion observed at the end of 2017.
- As regards to sub-items under assets, at the end of May 2018, reserve assets recorded USD 107.3 billion indicating a decrease of 0.4 percent, while other investment recorded USD 74 billion indicating a decrease of 3.3 percent compared to the end of 2017. Currency and deposits of banks, one of the sub-items of other investment, decreased by 10.8 percent to USD 31.2 billion compared to the end of 2017.
- As regards to sub-items under liabilities, direct investment (equity capital and other capital) at the end of May 2018 recorded USD 139.5 billion indicating 26.3 percent decrease in comparison to the end of the previous year, with the contribution of the changes in the market value and foreign exchange rates.
- Portfolio investment decreased by 9.4 percent and recorded USD 161 billion compared to the end of 2017. Non-residents’ equity holdings recorded USD 39.1 billion reflecting a decrease of 24.7 percent compared to the end of 2017. Non-residents’ holdings of GDDS (Government Domestic Debt Securities) recorded USD 24.7 billion with a decrease of 20.2 percent. Outstanding eurobond holdings of nonresidents posted USD 46 billion with an increase of 3.8 percent.
- Other investment indicated an increase of 2.1 percent to USD 332 billion compared to the end of 2017. FX deposits of non-residents held within the resident banks recorded USD 37.8 billion at the end of May 2018, reflecting an increase of 3.4 percent compared to the end of 2017, and TL deposits increased by 4.3 percent recording USD 13.7 billion.
- Total external loan stock of the banks recorded USD 94.4 billion decreasing by 0.4 percent compared to the end of 2017, and total external loan stock of the other sectors recorded USD 111 billion increasing by 2.7 percent.