The Turkish lira continued its deep declines during trading today, Tuesday, as this coincides with the current account in Turkey recording its first surplus in nine months.
The current account balance in Turkey recorded a surplus of $407 million in June, marking the first surplus in nine months, according to data from the Central Bank of Turkey.
The data showed that the figure represents a shift from an upwardly adjusted deficit of $1.02 billion in May, and an increase from the $768 million surplus recorded in June 2023.
The central bank reported that excluding gold and energy, the current account recorded a surplus of $4.5 million for the month.
The goods deficit for June was $4.14 billion, while the services sector saw a net surplus of $5.6 billion. In the services sector, travel contributed a net inflow of $4.8 billion.
For the January-June period, the current account balance recorded a deficit of $16.5 billion.
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Central Bank intervenes to support the currency
Turkey’s central bank has stepped in to support the lira, which fell sharply last week, amid continued financial volatility caused by recession fears in the US economy following Friday’s nonfarm payrolls report, reports over the weekend.
Reports have indicated that Turkey’s central bank has injected about $6.6 billion to support the currency, which could lead to a reduction in foreign exchange reserves by about $6 billion. The reports also expected the lira to continue to decline due to the increased demand for dollars by citizens, in conjunction with the central bank’s termination of the deposit protection system against exchange rate fluctuations.
Meanwhile, the lira is now falling significantly against the US currency to 33.57 pounds to the dollar, by 0.6%.
While the gram of gold denominated in Turkish lira at the level of 2,655 liras, up by about 0.8% during today’s trading.
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