Something bizarre is happening on Turkey’s accounting books, and nobody’s quite sure why.
Turkey attracted $7.9 billion of income from unexplained sources during the first eight months of 2014, compared to an outflow of $90 million during the same period a year ago, according to the central bank data. In the three months that followed, $5.6 billion of that left the country.
Unexplained flows of foreign funds into and out of the economy — marked as “net errors and omissions” in Turkey’s Balance of Payments report — showed violent swings during the first 11 months of 2014. Outflows in November were estimated to be $3.46 billion, the biggest monthly exodus in more than 16 years, according to central bank data.