Turkey's external assets amount to $362.9 billion as of June

Turkey's Net International Investment Position (NIIP) saw a slight improvement in the first half of 2021, increasing by 2.8 percent compared to the same period last year, according to recent data. However, the NIIP still stands at a negative figure of -$329.4 billion as of the end of June 2021.

The country's liabilities against non-residents also increased, amounting to $692.3 billion as of the end of June 2021. This represents a 1 percent rise compared to the same period last year.

One of the key contributors to these figures is the performance of direct investments. Direct investments under assets, which include domestic assets owned by foreign entities, rose 3.4 percent to $69.8 billion. However, the value of direct investments under liabilities, which represent foreign assets owned by Turkish entities, decreased. This decline was due to the increase in foreign exchange rates, with the value of direct investments under liabilities dropping 0.9 percent to $204.4 billion by the end of January. Despite the increase in the BIST 100 index value, the value of direct investments under liabilities decreased.

Other investments, which include investments in stocks, bonds, and other financial assets, also showed mixed results. Other investments under liabilities, which include Turkish investments in foreign entities, increased in value, rising 3.4 percent to $371.2 billion. On the other hand, portfolio investments under liabilities, which include foreign investments in Turkish stocks and bonds, decreased in value, dropping 2.9 percent to $116.7 billion.

Reserve asset items, which include gold reserves and foreign currency reserves, were at $149.9 billion as of the end of June 2021, marking a 4.2 percent decrease compared to the previous year.

It's important to note that no specific person or institution has been identified as solely responsible for the decline in Turkey's NIIP in 2021. Such changes result from a combination of macroeconomic factors, government policies, foreign investor actions, and global economic conditions rather than a single entity.

Despite the challenges, Turkey's external assets totaled $362.9 billion as of the end of June 2021, representing a 0.5 percent decrease compared to the end of last year. Other investments under assets totaled $138.8 billion, up 1.7 percent.

As the country continues to navigate through these economic shifts, it will be interesting to see how these trends evolve in the second half of 2021.