1/6
This is a big deal
Turkey's NIIP/Net International Investment Position (the difference between Turkey's public & private external assets & liabilities), increased by 26.2% from -$393.1 billion (July 2020) to -$290 billion (July 2021)
Continued👇
hurriyetdailynews.com/net-intl-inves…
This is a big deal
Turkey's NIIP/Net International Investment Position (the difference between Turkey's public & private external assets & liabilities), increased by 26.2% from -$393.1 billion (July 2020) to -$290 billion (July 2021)
Continued👇
hurriyetdailynews.com/net-intl-inves…
2/6
The NIIP is pretty much the accumulation of a countries yearly Current Account Deficits & Surpluses
When the NIIP is negative, it represents the total debt accumulated by that country resulting from consuming more than what you produce (when imports exceed exports)👇
The NIIP is pretty much the accumulation of a countries yearly Current Account Deficits & Surpluses
When the NIIP is negative, it represents the total debt accumulated by that country resulting from consuming more than what you produce (when imports exceed exports)👇
3/6
A 26.2% fall in this total (public & private) debt within one year is a staggering improvement & is indicative of a narrowing Current Account Deficit
Although this deficit had momentarily turned into a surplus, the COVID-19 era brought it back into deficit👇
A 26.2% fall in this total (public & private) debt within one year is a staggering improvement & is indicative of a narrowing Current Account Deficit
Although this deficit had momentarily turned into a surplus, the COVID-19 era brought it back into deficit👇
4/6
The yearly current account, however, is rapidly heading towards a surplus again
One of the reasons for this is the decrease in imports & increase in exports resulting from the weakened lira👇
The yearly current account, however, is rapidly heading towards a surplus again
One of the reasons for this is the decrease in imports & increase in exports resulting from the weakened lira👇
5/6
So, the⬆️in the current account deficit leading to a⬇️in the lira which in turn leads to a⬇️in this very deficit is effectively a self-correcting problem
Self-correction though devaluation is our only option until extraction of gas begins in the Black Sea & EastMed👇
So, the⬆️in the current account deficit leading to a⬇️in the lira which in turn leads to a⬇️in this very deficit is effectively a self-correcting problem
Self-correction though devaluation is our only option until extraction of gas begins in the Black Sea & EastMed👇
5/6
Once we accumulate enough years of surplus, our NIIP will permanently become positive & the lira will start gaining value in a sustainable manner for the long-term
We are at the beginning of this trend now
Once we accumulate enough years of surplus, our NIIP will permanently become positive & the lira will start gaining value in a sustainable manner for the long-term
We are at the beginning of this trend now
7/7
When the NIIP enters positive territory, currency attacks against the Turkish Lira by foreign powers will no longer work
For more on the behind-the-scenes of such attacks, refer to my short thread below👇
When the NIIP enters positive territory, currency attacks against the Turkish Lira by foreign powers will no longer work
For more on the behind-the-scenes of such attacks, refer to my short thread below👇
https://twitter.com/InterestingTurk/status/1346547350307651584?s=20
Turkish gov & corporations wiped off a total of 26.2% in debt in 1 year w/ improving current account deficit. Future of lira looking very good. Thread🖕
@EkremSerdarUsta @eurodolar1980x @KaanSariaydin @greatcountry_tr
@EkremSerdarUsta @eurodolar1980x @KaanSariaydin @greatcountry_tr
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