Foreign Investors Make First Return After 14 Months

A Shift in Market Sentiment

For the first time in over a year, foreign investors have made a notable return to Turkish financial markets. Last week saw the highest volume of foreign capital inflow since the long dry spell began, marking a significant moment for investor sentiment.

From Volatility to Renewed Interest

Throughout the year, foreign portfolio flows have been inconsistent, reflecting global uncertainty and local economic challenges. High inflation, policy unpredictability, and concerns about financial stability have kept many foreign investors cautious. But the recent inflow indicates a possible change in perspective.

Analysts view this as a signal that confidence in Turkey’s economic outlook might be slowly returning. Expectations of interest rate cuts by the Central Bank, along with efforts to maintain stability in the lira and reduce inflation, could be contributing factors. While it’s too early to call this a full reversal of the outflow trend, the renewed activity is a clear departure from the past 14 months of foreign investor hesitation.