Investments in ABD Securities Are Breaking Records: Households and Companies Are Flooding In

Foreign Investments Increase for Currency Income

The desire to obtain foreign currency income reached its peak in the third quarter of this year, while domestic residents' foreign portfolio investments reached an all-time high of $4.8 billion. According to the Central Bank's data, households alone made notable investments of $2 billion 675 million in stocks and bonds during this period.

Tight Monetary Policy is Influencing

The effects of tight monetary policies and the real effective Turkish Lira approach have led both households and companies to turn their eyes abroad. According to the Central Bank's data, a significant increase is observed in foreign portfolio investments each year.

Foreign Stock Investments Break Records

In the third quarter of this year, the foreign portfolio investments of domestic residents rose to $4 billion 793 million, an increase of 5.48% compared to the same period last year. Households' foreign stock investments reached a record of $1.78 billion, constituting 56% of total foreign investments.

2024 Goals and Growth Expectations

A 20.85% increase in foreign portfolio investments is expected by the end of 2024. Additionally, households' foreign bond investments reached $953 million, representing an annual increase of 89.09%. This rise is said to be parallel to households' interest in foreign government bonds.

Geographical Distribution of Investments

In the geographical distribution of investments, 89.4% of the $2.5 billion invested in stocks by domestic residents was directed towards American companies, while only 9.66% was allocated to European companies. Experts indicate that domestic residents will continue to prefer overseas investments for currency returns if the current policies persist.

Turkey's Net International Investment Position

According to the data released by the Central Bank, Turkey's net international investment position deficit was recorded at $327.1 billion. During this period, foreign assets rose by 8.2% to reach $395.5 billion. In particular, reserve assets climbed to $180.1 billion, marking a historical peak.