Türkiye’s International Investment Position (IIP) reached minus $327.1 billion as of September 2025, according to data released by the Central Bank of the Republic of Türkiye (CBRT).

The figures highlight the country’s continuing reliance on foreign capital while signaling gradual growth in its foreign asset base.

In the third quarter, Türkiye’s foreign assets rose by 8.2% compared to the previous quarter, reaching $395.5 billion, while liabilities grew by 3.1%, totaling $722.6 billion. The increase in assets was supported by a $1.8 billion rise in reserve assets, bringing total reserves to $180.1 billion, the highest level in Türkiye’s recorded history.

Breaking down the assets, foreign direct investments (FDI) increased 3.8% to $72.5 billion, while other investments, which include loans, deposits, and trade credits, fell 2.3% to $138.1 billion. Notably, banks’ foreign currency cash and deposit holdings declined sharply by 9.3% to $42.7 billion, reflecting tighter liquidity and currency management in the banking sector amid global economic uncertainty.

On the liabilities side, direct investments climbed 2.7% to $213.7 billion, portfolio investments surged 12.1% to $130.8 billion, and other investments in the banking and corporate sectors grew 0.5% to $378.1 billion. The General Government’s government debt securities (GDS) liabilities saw a significant 30.1% increase, reaching $15.7 billion, underlining rising public borrowing in global financial markets.

Economists note that Türkiye’s negative IIP continues to reflect a structural external financing gap, with liabilities consistently exceeding foreign assets. While the rise in reserve assets provides some buffer against external shocks, the country remains exposed to fluctuations in global capital flows and exchange rates.

“The growth in assets is encouraging, but the persistently high level of liabilities underscores the need for sustainable economic and investment policies to improve Türkiye’s external balance,” said a senior analyst at a local investment firm.

The CBRT data comes amid ongoing debates about Türkiye’s strategy to attract foreign investment and reduce reliance on short-term external borrowing, as the country seeks to strengthen its economic resilience amid global uncertainties. (ILKHA)