World Economy

Turkish C/A Deficit Narrows

Turkish C/A Deficit NarrowsTurkish C/A Deficit Narrows

Turkey's current account deficit narrowed in June to $3.36 billion from $4.44 billion in May, the central bank said on Tuesday, helped by a fall in the oil price that has cut the cost of energy imports. A Reuters poll had forecast a deficit of $3 billion. "The ongoing fall in energy imports is supportive, and the domestic demand growth remains subdued," Financebank said in a note to clients. "We maintain our view that the current account balance will narrow at a mild pace in the forthcoming period." Turkey's deficit is financed by capital inflows, making the economy susceptible to changes in global liquidity and investor sentiment. That has been hit in recent months by Ankara's protracted negotiations on forming a coalition. The benchmark 10-year government bond yield fell to 9.59% from 9.72% on Monday. The lira traded at 2.76 against the dollar on Monday. The main BIST 100 share index rebounded more than 2% to 79,167.52 points, recovering from Monday's fall.