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 - November 2018
According to the International Investment Position (IIP) at the end of November 2018, external assets recorded USD 233.8 billion indicating an increase of 0.4 percent compared to the end of 2017 and liabilities against non-residents recorded USD 591.2 billion indicating a decrease of 14.9 percent.
The net IIP, defined as the difference between Turkey’s external assets and liabilities, posted USD -357.5 billion at the end of November 2018, in comparison to USD -462 billion observed at the end of 2017.
As regards to sub-items under assets, at the end of November 2018, reserve assets recorded USD 91 billion indicating a decrease of 15.5 percent, while other investment recorded USD 90.9 billion indicating an increase of 18.9 percent compared to the end of 2017. Currency and deposits of banks, one of the sub-items of other investment, recorded USD 47 billion indicating an increase of 34.4 percent compared to the end of 2017.
As regards to sub-items under liabilities, direct investment (equity capital and other capital) at the end of November 2018 recorded USD 129.5 billion indicating 33.9 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 16.9 percent and recorded USD 144 billion compared to the end of 2017. Non-residents’ equity holdings recorded USD 31.4 billion reflecting a decrease of 39.6 percent compared to the end of 2017. Non-residents’ holdings of GDDS (Government Domestic Debt Securities) recorded USD 19.4 billion with a decrease of 37.4 percent. Outstanding eurobond holdings of nonresidents posted USD 49 billion with an increase of 10.5 percent.
Other investment indicated a decrease of 2.4 percent to USD 317.7 billion compared to the end of 2017. FX deposits of non-residents held within the resident banks recorded USD 31.8 billion at the end of November 2018, reflecting a decrease of 13 percent compared to the end of 2017, and TL deposits increased by 12.4 percent recording USD 14.8 billion.
Total external loan stock of the banks recorded USD 83.1 billion decreasing by 12.4 percent compared to the end of 2017, and total external loan stock of the other sectors recorded USD 110.1 billion increasing by 1.6 percent.