IMF warns Turkey of low net int’l reserves, high short-term debt stocks

Turkey is in trouble internally.  Yesterday NEC-SE posted the article: Iran and Turkey a study in contrast.  In the article we stated:  “In a span of a week Iran becomes the only superpower in the Middle East who’s proxies are given the green light by the United States to conduct their operations throughout the Sunni States while Turkey, a NATO ally is suffering from internal political and economic strife wile involved in combat operations against the PKK and having the stigma that it is sponsoring ISIS operations within the region.”


The article states:  “Turkey’s external position was weaker than the level consistent with medium-term fundamentals and given large financing needs and short-term nature of capital inflows, Turkey remains vulnerable to capital flow reversal, said the International Fund on July 28 in an analysis about countries’ external sector report for 2015.”

“Developments so far in 2015 suggest some strengthening of the external position in Turkey, mainly due to terms of trade gain from lower oil import prices. However, net international reserves are still low, and the net international investment position (NIIP) will continue to deteriorate until the current account deficit is narrowed,” said the IMF.”


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