Number of foreign investors interested in Turkey increases towards election on May 14
It is reported visits of foreign investors to Turkey and teleconference meetings before the upcoming elections have increased significantly compared to previous years. Investors are trying to check out whether election on May 14 will create a radical change in the markets.
According to investors and bankers close to the matter, several large foreign bank financial institutions, including BBVA and BNP Paribas, will hold talks with investors, current policy deciders and opposition officials and consultants.
Investors will try to figure out whether the election period will create a good opportunity to increase their positions in Turkey’s as they have significantly reduced their positions in recent years and even almost reset in the TL-denominated bond market.
VISITS AND TELECONFERENCE MEETINGS ALSO INCREASE
As a result of President Tayyip Erdogan’s unorthodox policy approach, including large-scale interest rate cuts in the face of rising inflation, the economy and markets have largely been left to state control, and a large number of foreign investors have left the Turkish markets over the past five years.
However, polls conducted on the weekend of March 11-12 showed that Kemal KILICDAROGLU, the candidate of the Nation’s Alliance, was 10 points ahead of Erdogan in the presidential and parliamentary elections, which will take place on May 14 and appear to be the most important elections in the history of the Republic of Turkey.
Sources said that the visits of foreign investors to Turkey and teleconference meetings had also increased in recent weeks. The talks will continue in April and are attracting much more attention than in previous years.
THE INVESTORS TO VISIT THE COUNTRY HAVE $1.5 TRILLION IN BOND ASSETS
A source close to the matter said that the clients who would participate in the visit to be organized by BBVA had about $ 1.5 trillion of bond assets in emerging markets.
Sources believe if the opposition wins the election, there will a possibility of a large-scale interest rate increase in a relatively short period of time. Investors are “trying to figure out who will win, who will be put in the main positions and what the program will be.”
