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Turkey: Financial assets of domestic investors exceeded ₺8 trillion for the first time

The financial assets of domestic investors reached ₺8.1 trillion at the end of January this year. With the initiation of the Currency Protected TL Time Deposit application, there was an increase of ₺156 billion in deposits in the first month of the year. The share of foreign exchange accounts in the total decreased.

For the first time in history, the financial assets of domestic residents exceeded the gross national product by exceeding ₺8 trillion. According to the data of the Turkish Capital Markets Association, the financial assets of the locals, which were ₺5 trillion 259 billion in January 2021, increased by 53.8% to ₺8 trillion 92 billion in the same period of 2022.

RECORD INCREASE IN TL DEPOSIT

In the first month of 2022, it was noted that there was a significant increase in TL deposits, especially with the effect of the introduction of the exchange-protected TL deposit application. As of the end of January, the volume of TL deposits increased by 33% in the last 1 year, and by ₺500 billion in amount, reaching ₺1 trillion 985 billion. Most of this increase was achieved in January. TL deposits, which were ₺1 trillion 829 billion at the end of December, increased by ₺156 billion in January due to the effect of the exchange-protected TL deposits.

SHARE OF EXCHANGE DROPPED

In the first month of this year, with the effect of controlling the fluctuations in the exchange rate, the size of the foreign currency accounts showed a limited increase and remained at ₺3.1 trillion. The share of foreign exchange accounts in financial assets increased from 33% in January 2021 to 40% in December. In January of this year, the said rate decreased to 38%.

STOCKS INCREASED TO ₺555.1 BILLION

Borsa Istanbul, which attracted great interest from the investors with the effect of the record public offering in 2021, remained afloat with the purchases of the locals, while the growth in its share portfolio continued. The share portfolio of the domestic investor, which was ₺406.5 billion in January 2021, increased to ₺555.1 billion in January of this year. In Borsa Istanbul, where the share of foreign investors fell below 40%, the share of locals exceeded 60%. The number of domestic investors, which was 1 million 194 thousand at the end of 2020 in the stock market, reached its historical peak with 2 million 661 thousand in April 2021. The number of investors was 2 million 340 thousand last month.

ATTENTION TO PUBLIC DOCUMENTS CONTINUES

DOMESTIC investors’ interest in public papers continues. While the portfolio of Domestic Government Domestic Debt Securities (GDDS) portfolio increased from ₺1 trillion 158 billion to ₺1.6 trillion, the assets held in public eurobonds increased from ₺253 billion to ₺522 billion. The assets in private sector eurobonds also doubled, rising from ₺93 billion to over ₺180 billion.

Source: Sabah / Translated by Irem Yildiz

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