May Current Account Deficit Reaches $1.46B: Financial Flows and Reserve Volatility

Turkey's current account deficit in May 2026 stood at $1.46 billion, according to the Central Bank's monthly payments balance report. Excluding gold and energy, the current account surplus reached $3.626 billion, while the foreign trade deficit hit $4.340 billion. Annualized figures showed the current account deficit at $37.3 billion and the foreign trade balance at $74.4 billion. The services surplus contributed $62.5 billion, with transport and tourism revenues at $2.243 billion and $3.815 billion respectively.

Structure of Financial Flows

The financial account was supported by direct investments ($1.8 billion), portfolio investments ($5.3 billion), and commercial loans ($46.7 billion), while net deposits had a negative impact of $18.8 billion. Central Bank reserves declined by $32.3 billion. Foreign investors increased their direct investments in Turkey by $296 million, while domestic investors abroad invested $751 million. Real estate transactions included $143 million in outbound purchases and $184 million in inbound investments.

Reserve Volatility

Official reserves saw a net decline of $3.3 billion. In other investments, foreign banks' deposits in Turkey rose by $3.529 billion, while $2.786 billion in net bond sales and $287 million in equity purchases were recorded. The public sector sold $169 million in bonds, with $562 million and $860 million in purchases from banks and other sectors.