Turkey’s hair raising drive for growth leaves investors on sidelines

Turkey flag adobe stock AS 230x150
By Ross Lancaster
12 May 2020

Turkey has stood out among emerging market countries for its rapid-fire approach to monetary policy, as it attempts to turbo-charge growth amid the coronavirus pandemic. But with sustained downward pressure on the lira, few foreign investors are willing to buy in. The crisis is also causing a hedging conundrum.

Since the global spread of the novel coronavirus, Turkey has run hard on low rates and interventionist currency policies. Aggressive monetary loosening has included a quantitative easing (QE) programme.

Given foreign investors’ scepticism about Turkish central bank independence, these measures have been met with wariness. When the QE ...

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