Turkish manufacturing sector has significant net FX liabilities

The Turkish central bank (CBT) released July data on corporate balance sheets, which showed slight widening of the "open FX position" of non-bank corporates from $174.2bn to $174.8bn by end-July. However, July did not represent a significant increase in total exposure, which has been more or less stable in the $175-180bn range. 

What is more, short-term FX liabilities remain a relatively small component within total FX exposure, and the trend there has been towards slight narrowing as proportion of total. 

"Hence, the Turkish manufacturing sector has significant net FX liabilities, but at least there has not been a worsening trend in recent years. Hence, the data are TRY-neutral", states Commerzbank.