Bloomberg attempts to shed light on the phenomenon of the increase in financial inflows of unknown origin in Turkey with its article entitled “Mystery Money Flows Help Turkey Finance Widening Foreign Gap».
In his article Bloomberg it is pointed out that the mysterious flows of money to the Turkey have risen to new record highs, increasing by $5.5 billion for the month of July alone, bringing the total for the first 7 months of 2022 to $24.4 billion.
In the past, the Central Bank her Turkey had clarified that the mysterious cash flows were due to new deposits by the Turks, who had saved liquid assets either in Turkish lira or – due to tourism revenues – in foreign currency.
However, according to the Turkish economist Haluk Burumcekciwhile it is reasonable to see a percentage of capital inflows of unknown origin, the continued increase of such inflows to the Turkish economy this year constitutes a “problem”.
The income by tourism are not enough to justify such increases in cash inflows, as tourism receipts totaled $4.5 billion in July and $16.4 billion in the January-July period. These revenues correspond to 70% of recorded revenues of unknown origin.
It is pointed out that after the Russian invasion of Ukraine its budget deficit Turkey is widening to $4 billion in July, beating estimates of $3.7 billion with covering that shortfall posing a challenge for the Recep Tayyip Erdogan which at the same time has to manage an inflation that reaches the levels of 80%.
The Bloomberg points out, finally, that it is mysterious capital inflows that help the Central Bank keep the Turkish lira relatively stable.
News today:
At 30 degrees the mercury today – Where rains are expected
Biden talks about his dream of eradicating cancer once and for all
Zendaya won best actress in a TV drama series for her performance in Euphoria
