Turkey Dollar Sales to State Energy Firm Hit Record in January
Turkey Dollar Sales to State Energy Firm Hit Record in January
(Bloomberg) -- The Turkish central bank’s foreign currency sales to state-run energy importer Botas hit a record, as foreign purchases of oil and gas widen the nation’s trade deficit.
The monetary authority sold $4.15 billion worth of foreign currencies to Botas in January, data published on Monday showed. That’s the highest monthly amount in figures going back to June 2013. Sales in the four months to January totaled $9.99 billion.
The rising cost of energy imports and the lira’s 44% depreciation last year have caused havoc with Turkey’s foreign balances. In January, the monthly trade deficit reached a decade high, while consumer price inflation surged to an annual 48.7%.
The recent economic data have further called into question the viability of President Recep Tayyip Erdogan’s plan to spur economic growth through low interest rates and a current-account surplus. The central bank will publish current-account data for December on Feb. 11. Analysts surveyed by Bloomberg expect a deficit for the second month.
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