Foreign investor interest in Turkiye grows: Deutsche Bank Türkiye CEO

Orhan Ozalp, CEO of Deutsche Bank Türkiye, stated that foreign investor interest in Turkiye has significantly increased in recent months, according to Bloomberg HT.

After a prolonged period of disengagement, Turkiye has successfully re-captured the attention of foreign investors, who are now beginning to invest again.

Why it matters

This rise in foreign investment is crucial for Türkiye’s economic stability and future growth. Increased investor confidence can lead to valuable capital inflows, market stabilization, and a stronger position for Türkiye in the global economy, especially in terms of its economic relationships with Europe and other international markets.

Details

• Following the central bank’s meeting in December and the release of inflation figures, foreign investors became more inclined to increase their investments in Turkiye.
• In the last 15 days, certain funds have resumed investments in Türkiye, particularly in the bond market—a trend not seen since 2015-2016.
• Short-term positions have started to emerge following the Central Bank’s January meeting.
• Ozalp emphasized Türkiye has successfully regained the trust of foreign investors after years of reduced engagement.

In addition to domestic developments:

• Ozalp addressed global economic issues, such as the uncertainty surrounding former U.S. President Donald Trump’s policies.
• Technological advancements continue to reshape the global economy, presenting new challenges and opportunities.
• Ozalp emphasized the importance of Germany’s role in Europe, particularly regarding Türkiye’s exports.
• He stressed the need for the European Union to resume growth to prevent further recessions, which could significantly impact Türkiye’s external trade.

Big picture

Ozalp’s remarks reflect a larger trend of growing foreign investor confidence in Türkiye, signaling a shift after years of limited engagement. This renewed interest could have significant implications for Türkiye’s financial markets, contributing to both short-term and long-term stability.

What to watch

Keep an eye on developments in Türkiye’s bond market and any new policies from the Central Bank that might affect foreign investment.

Additionally, monitor the political and economic situation in Europe, particularly in Germany, as it could influence Türkiye’s trade relations and investor sentiment moving forward.