Deutsche Bank Maintains Long Position Recommendation on Turkish Lira
Deutsche Bank, one of the largest banks in Germany, has maintained its long position recommendation on the Turkish Lira (TL).
The bank’s strategists noted in a report that they expect less depreciation of the TL in the coming months.
The report stated, “While we do not anticipate a nominal depreciation as severe as in August, we believe that some nominal value loss may continue, and the forward level of the dollar/TL will likely remain 1-2% below current levels.”
The bank indicated that, barring any unexpected changes in policy, the main risk would be a sharper carry trade inflow or several high inflation pressures leading domestic residents to accumulate more foreign currency.
Previously, Deutsche Bank had identified Turkey as the best investment destination for 2024 and reported in July that TL-denominated bonds provided a very attractive entry point for investors.
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
