Foreign investors' inflows into the Turkish stock market reached $562.4 million (Anadolu Agency)
Turkey's central bank has called on foreigners to invest in lira-denominated government bonds amid growing investor interest in Turkish assets.
Official data quoted by the Daily Sabah newspaper showed that foreign investors showed more interest in Turkish assets, revealing that foreign investors carried out acquisitions worth 42.13 billion liras ($1.45 billion) during the week ending December 2017, the largest influx since July <>.
The rebound in investment followed a series of large rate hikes that have restored attractiveness to the market in recent months.
The central bank has raised interest rates by 3150,40 basis points since June to <> percent.
According to Daily Sabah, Turkish Central Bank data showed last Thursday that foreign investors pumped a net amount of $ 891.4 million into Turkish local government bonds during the week ending December 2017, the highest weekly inflow level since August <>.
Foreign investors' inflows into the Turkish stock market amounted to $562.4 million, the largest weekly amount since November 2020.
Foreign investments in Turkish equities reached $562.4 million in one week (Getty Images)
Meanwhile, Hafidha Haya Erkan, governor of the Central Bank of Turkey, said that the monetary tightening cycle in Turkey is coming to an end, calling on foreign investors to invest in government bonds denominated in Turkish lira, which currently have favorable yields.
Arkan said in an interview with local daily Hurriyet on Saturday that tight monetary policy is beginning to affect consumer prices, but single-digit inflation will not be achieved before 2026.
Amid improved data, data from Standard & Poor's showed the cost of insuring Turkey's debt against default shrank to a near three-year low on Thursday.
Turkey's new economic management shifted to more traditional policymaking after President Recep Tayyip Erdogan won a new term in May, adopting strong monetary tightening to curb strong domestic demand and stem inflation.
Official data showed that Turkey's annual consumer price inflation rate rose to 61.98% in November, driven by rising food and transport prices.
The government has also sought to rebuild foreign exchange reserves and boost investment and exports to improve the current account balance.
The total reserves of the Turkish Central Bank rose by one billion and 225 million dollars in the week ending on the eighth of December, to reach 141.3 billion dollars, the highest level ever.
According to data from the Turkish Central Bank published on Thursday, the bank's total foreign exchange reserves in the mentioned period increased by $ 1.276 billion to reach $ 94.5 billion, while the total gold reserves decreased by $ 52 million to exceed $ 46.8 billion.
Source: Turkish Press + Bloomberg + Agencies