Turkey’s current account deficit widens in January, in line with forecasts

Turkey’s current account deficit widened in January to stand at $2.76 billion, up almost by $561 million year-on-year, according to the Turkish Central Bank’s report Monday. Data was largely in line with expectations.

The Central Bank attributable the rise to an increase in foreign trade deficit and a decrease in revenue from services. The 12-month rolling deficit rose to $33.16 billion, up from $32.6 billion in December 2016, according to the report.

The political row overshadowed data showing a narrowing of Turkey's current account deficit and attention now is on Thursday's central bank meeting after it signalled it may tighten policy further if needed. Central Bank of Turkey's (CBT) main funding rate currently stands at 10.8 percent, the highest since 2012.