Lira Under Pressure as Turkey Trade Gap Widens – Commerzbank

Turkey’s foreign trade deficit widened by 26.2% year-on-year in June to $10.4 billion, data showed on Wednesday. Commerzbank analyst Tatha Ghose noted that while both exports and imports recovered from May’s holiday-related distortions, the import surge was stronger, underscoring persistent external vulnerabilities.

The marked rise in imports relative to exports underscores the challenging external balance facing the lira. With the trade gap widening, pressure on the currency is likely to mount, especially given Turkey’s heavy reliance on foreign capital inflows to finance the shortfall.