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Turkey’s Corporate FX Shortfall Narrows to $81.2B in July 2025

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New data from the Central Bank of Turkey shows that non-financial corporates continued to reduce their net foreign exchange short position in July 2025. According to Yatırım Finansman, the FX deficit dropped by $9.6 billion over the past 12 months, even as short-term liabilities increased and asset maturities shortened.

Yatırım Finansman’s latest “Macro Watch” report highlights improving trends in Turkish corporates’ foreign exchange asset and liability positions. Based on Central Bank of Turkey (CBRT) data, the report offers key insights into how firms are managing FX risk in a volatile economic environment.

Net FX Deficit Falls to $81.2 Billion

As of July 2025, Turkey’s non-financial sector companies held a net FX short position of $81.2 billion, marking a $9.6 billion improvement compared to July 2024.

The narrowing of the deficit reflects a gradual decline in FX-denominated liabilities and a moderate increase in corporate FX assets.

Short-Term FX Gap Widens Sharply

Despite the overall improvement, short-term net FX liabilities widened from just $74 million in June to $1.16 billion in July. The surge highlights a growing mismatch between short-term assets and obligations.

This shift suggests a potential liquidity squeeze and underscores the need for careful FX risk management amid tighter global financial conditions.

Maturity Profile Shifts: Assets Shorten, Liabilities Extend

  • The share of short-term FX assets fell by 1.6 percentage points to 88.0% of total assets.

  • Meanwhile, the share of short-term FX liabilities dropped 3.7 percentage points to 37.3% of total FX debt.

This trend indicates that companies are increasingly seeking to extend the maturity of their FX debts, but are still holding most of their assets in short-term instruments—raising questions about rollover risk.

Corporate FX Deposits Continue to Climb

  • Corporate FX deposits held in domestic banks rose by $15.9 billion year-to-date, reaching $111.9 billion.

  • Offshore deposits also increased by $5.6 billion, climbing to $39.3 billion.

As of July 2025, total FX assets of the non-financial corporate sector reached $151.2 billion, supporting a stronger foreign currency buffer despite ongoing macroeconomic uncertainty.

Source:  Yatirim Finansman

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