Skip to content
News from Turkey

Türkiye’s Net International Investment Position Stands at Negative $279 Billion in February

dollar

According to data released by the Central Bank of the Republic of Türkiye (CBRT), the country’s net international investment position (NIIP) posted a deficit of $279.0 billion as of February 2025.

Foreign Liabilities Down More Than Assets

As of end-February, Türkiye’s foreign assets stood at $378.2 billion, marking a slight monthly decline of 0.1%, while foreign liabilities dropped more significantly—1.5% to $657.2 billion.

This led to an improvement in Türkiye’s net international investment position, with the total external liabilities falling by $9.7 billion compared to the previous month.

Asset Breakdown: Rise in Foreign Exchange Deposits

Among Türkiye’s assets, foreign exchange and deposit holdings of Turkish banks rose by 4.4%, reaching $39.0 billion.

  • Direct investments abroad increased slightly by 0.8% to $72.6 billion.

  • Other investments, including trade credits and loans, decreased marginally by 0.3% to $136.2 billion.

  • Official reserve assets dipped 0.3%, coming in at $165.4 billion.

Liabilities: Direct Investments Drop Sharply

On the liability side, direct investment liabilities fell by 5.8%, totaling $169.6 billion. This decline was attributed to a drop in the BIST 100 index and an uptick in foreign exchange rates.

Other key highlights:

  • Turkish lira deposits held by non-residents in Turkish banks declined by 7.1% to $23.1 billion.

  • Portfolio investment liabilities showed a marginal 0.1% rise, totaling $128.3 billion.

  • Other liabilities—primarily loans and trade credits—also increased by 0.1%, reaching $359.3 billion.

Context: Why This Matters

The net international investment position is a key indicator of a country’s external balance sheet. A negative NIIP implies that foreign liabilities outweigh national external assets, which may impact investor sentiment, currency stability, and external borrowing costs.

The data suggests that while Türkiye made minor gains in external asset components, market dynamics such as currency depreciation and equity market volatility continued to erode the valuation of liabilities, resulting in a slightly improved investment gap.

Related articles