The country’s budget for six months was replenished by $ 28 billion, allegedly due to the fact that tourists from the Russian Federation “had to pay in cash.”
Turkey between January and August 2022 received almost $28 billion of unknown origin. The Financial Times reported this on Tuesday, October 25.
The money, billed as “pure errors and omissions” by the central bank, closed 70% of Turkey’s current account deficit of about $40 billion.
According to Turkish Finance Minister Nureddin Nebati, the bulk of this money is unrecorded tourism income. In particular, many Russian tourists have to pay in cash due to the disconnection of Russia from international payment systems due to sanctions.
He explained the other part of the uncategorized income as the return of money from offshore companies, some of which also came in cash. He made sure all the receipts were legal.
It should be noted that the balance of payments of Turkey is based on accounting principles: every economic transaction has a double entry – in the credit of one article and the debit of the other (both in terms of value). The difference between the sum of all credit and debit entries is shown in the item “net errors and omissions”. In theory, it should be zero.
The Turkish Ministry of Culture and Tourism reports that Russians make up about 13% of the total number of foreign tourists in Turkey. There are just more Germans.
Nebati added that foreign currency inflows will continue and allow Turkey to comfortably avoid a balance of payments crisis next year.
As you know, Turkey is currently developing a “ticket card” for Russian tourists as an alternative to the Mir system.
It should be noted that Turkey has begun to reject Russian gas in favor of other suppliers. Fuel imports from Russia fell 37.2% in July
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.