Goldman Sachs election commentary: Positive performance

Goldman Sachs economists expect the Turkish lira to perform better compared to previous months due to increased capital inflows following the conclusion of the elections.

Goldman Sachs economists, including Clemens Grafe, predicted that the fact that the local elections in Turkey were largely uncontested and the message that current economic policies will continue would be welcomed by the markets.

CAPITAL INFLOWS MAY RESUME

The report recalled the capital outflows that have occurred since the beginning of the year and the significant loss in the reserves of the Central Bank of the Republic of Turkey (TCMB) due to election uncertainty.

However, it was projected that capital inflows would resume in the coming weeks simply by continuing with current policies. It was also estimated that the Turkish lira would show a much better performance compared to previous months, partly due to the rapid improvement in the current account balance.