International investor interest in Turkey is rising again

Stefan Weiler, Head of CEEMEA Debt Capital Markets at U.S. investment bank JP Morgan, made assessments regarding developments in the Turkish economy and the approach of international investors toward Turkey.

Stating that they see a significant change in the markets' approach to Turkey, Weiler said, "The market is already pricing in and expecting credit rating upgrades."

Pointing out that a significant portion of foreign investments had exited before the changes in Turkey's macroeconomic policies, Weiler said, "A large part of the international investor community is interested in Turkey again. So we see that the tide is turning, but this does not mean that all investors have returned."

Stefan Weiler emphasized that there are investors who think they need more time to allocate their resources to Turkey and feel comfortable, and that investors want clarity.

Weiler stated, "We held a seminar in New York this month for the Central Bank of the Republic of Turkey (TCMB) attended by more than 150 investors. Minister Mehmet Şimşek and Governor Hafize Gaye Erkan shared with investors the impact of the changes they have made here and what other changes can be expected. In this respect, I can say that the impact of the changes in policy has been strong so far."

Stefan Weiler expressed that the TCMB should continue to provide guidance to the market regarding the fight against inflation, and that this could mean continuing interest rate hikes. Furthermore, Weiler said, "The market thinks that the peak in interest rates is approaching, but there is also an expectation of an increase for tomorrow."

Reminding that inflation in Turkey is above 60 percent and the interest rate is at the 42.5 percent level, Stefan Weiler stated that a positive real rate of return must be provided for more investor inflows to occur.

Weiler emphasized that there are investors who think they need more time to allocate their resources to Turkey and feel comfortable, and that investors want clarity, and continued as follows:

"We held a seminar in New York this month for the Central Bank of the Republic of Turkey (TCMB) attended by more than 150 investors. Minister Mehmet Şimşek and Governor Hafize Gaye Erkan shared with investors the impact of the changes they have made here and what other changes can be expected. In this respect, I can say that the impact of the changes in policy has been strong so far."

Weiler stated that the Central Bank of the Republic of Turkey (TCMB) should continue to provide guidance to the market regarding the fight against inflation, and that this could mean continuing interest rate hikes, adding, "The market thinks that the peak in interest rates is approaching, but there is also an expectation of an increase for tomorrow."

News Source: 12punto