Whisper it quietly, but Turkey is on the verge of becoming investible again for foreign investors. After years of political interference in its monetary policy, a collapse in the Turkish lira's value over the past five years and a soaring inflation rate, there are promising signs that orthodox financial policies are back in place. The central bank is confident enough to welcome foreigners back into lira bonds, and has signaled an end to the monetary tightening cycle that has seen eight consecutive increases in the official interest rate.

Since President Recep Tayyip Erdogan's narrow re-election last May, there’s been a change in economic governance away from his unconventional view that higher interest rates cause higher inflation. Fundamental to this new approach was the appointment in June of Finance and Economy Minister Mehmet Simsek for a second tour of duty. A former Wall Street banker, Erdogan fired him in 2018 after nine years in the role, and his return is a a big positive for market stability.

QOSHE - Turkey Is Becoming Investible Again - Marcus Ashworth
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Turkey Is Becoming Investible Again

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05.02.2024

Whisper it quietly, but Turkey is on the verge of becoming investible again for foreign investors. After years of political interference in its monetary policy, a collapse in the Turkish lira's value over the past five years and a soaring inflation rate, there........

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