Real Sector's Net Foreign Exchange Deficit Hits Record High in July

The Central Bank of the Republic of Turkey (CBRT) has published foreign exchange position data for non-financial companies for the month of July. According to the disclosed table, the foreign exchange assets of these companies increased by nearly 2.3 billion dollars compared to the previous month. However, in the same period, the increase in companies' foreign exchange liabilities exceeded 7.3 billion dollars. Despite the limited rise in assets, the significant increase in liabilities led to a rapid expansion of the net foreign exchange position deficit. According to the data, the net foreign exchange position deficit grew by over 5 billion dollars in July alone. Thus, the deficit reached 210 billion 802 million dollars, hitting a record level. This development in the net foreign exchange position deficit indicates that real sector companies' foreign exchange liabilities are increasing faster than their assets. The data announced by the CBRT is followed as an important indicator of foreign exchange risk for non-financial companies. Not investment advice.