What matters this morning

The weak course in foreign direct investment (FDI) flow to Turkey continues, while real estate maintains to dominate net FDIs. Moreover, money continue to leave the country with the increase in FDI outflows. FDI flows to Turkey amounted to USD 1.9bn in January-June according to the Central Bank, while the country attracted USD 1.7bn capital investment in 2020. Considering the 3.5-year period on an annual basis, FDI inflows amounted to USD 6.69bn in 2018, USD 5.5bn in 2019 and USD 5.6bn in 2020. FDI outflows from Turkey rose to USD 1.3bn in January-June this year. The amount totaled USD 3.4bn in 2018, USD 2.69bn in 2019 and USD 2.8bn in 2020. On the other hand, foreigners’ real estate investments in total FDI flows increased to USD 2.4bn in the first six months of the year. This figure was USD 1.7bn in the same period of the previous year. In the meantime, foreigner’s net real estate purchases decreased to USD 4.9bn January-June 2019 from USD 5.9bn in 2018 same period and to USD 4.4bn in the first half of 2020.

Looking at the money market, appreciation in TRY, which started after the Central Bank kept interest rate steady at 19% last week, has ended. USD/TRY, which decreased for the fourth successive day and saw 8.37, is traded at 8.51 this morning. Strengthening of USD in global markets also affects the increase in USD/TRY. EUR/TRY, which showed a similar trend, increased by 0.59% to 9.97 this morning.

Gold prices decreased following the appreciation of USD after the Federal Reserve released meeting minutes. Spot gold dropped by 0.44% to USD 1,779 per ounce.

Oil prices decline for the sixth consecutive day due to the concerns over the fact that the fuel demand decreases with the impact of rise in coronavirus cases across the world. The unexpected increase in the U.S. crude oil stocks also turned up the pressure on prices. Brent crude fell by 2.52% to USD 66.51 per barrel, the lowest level since May 24.  


The short -term external debt stock surged by 6.5% to USD 121.7bn in June, compared to the end of 2020, according to the Central Bank.

The international investment position (IIP)posted USD 280.6bn deficit in June, according to the Central Bank. The IIP recorded a deficit of USD 378.3bn at the end of 2020.

The Central Bank will release the summary of the Monetary Policy Committee Meeting held on August 12 (2.00 pm).

The Central Bank and the Banking Regulation and Supervision Agency (BDDK) will release weekly money and banking statistics (2.30 pm).

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