Turkey’s current account deficit stood at $4.194 billion in June, narrower than the $5 billion shortfall forecast and improved from $5.45 billion in the same month last year, according to Central Bank of the Republic of Turkey data released on August 12, 2024. The 12-month rolling deficit declined to $27.3 billion from $32.1 billion in May, reflecting easing import demand and stronger tourism revenues during the summer season. The data points to continued external rebalancing as tighter monetary policy since mid-2023 cools domestic demand, reduces imports including consumer goods and gold, and helps ease pressure on the lira. The improvement matters because a smaller current account gap lowers external financing needs and supports efforts to rebuild foreign exchange reserves, even as inflation remains around 62% year-on-year as of July and structural pressures such as energy imports and reliance on short-term capital flows persist.