Impact of Post-Election Monetary Policy Changes
As a result of the altered monetary policy following the elections, Turkish Lira assets are gaining value.
While the exchange rate remains stable, record levels are being recorded on Borsa Istanbul. Additionally, Turkey’s credit risk premium is at its lowest level since 2020. The influx of foreign investors is also at its highest level in recent years.
Positive Recommendations from Foreign Institutions
Positive recommendations regarding Turkey continue to come from foreign institutions.
Vanguard, which manages over $7 trillion in assets, sees an investment opportunity in Turkey. In an evaluation made by the fund’s managers, it was stated, “Foreigners are returning quite aggressively. The numbers are truly very strong.”
Insights from Financial Reports
A report published by Citibank indicated that the normalization of policies in Turkey has increased investors’ interest in Turkish assets. The evaluation described the situation as “Turkish markets are on the verge of a renaissance.”
Investment Recommendations from Bank of America
Bank of America has advised investors to consider the Turkish Lira. Highlighting high returns, improvements in the current account balance, and tight monetary policy, the bank suggested a long position in Turkish Lira in a note sent to its investors.
Source
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.
