Deutsche Is Not Rushing to Invest in Turkey

Deutsche is not rushing to invest in Turkey. The bank thinks it is too early to make investments in Turkey.

According to Bloomberg HT's report, at Deutsche Bank's "CIO Economic Outlook" meeting, the bank's top global investment managers stated that it is too early to enter Turkey at full speed and they think there are better opportunities in South Asia. When asked at the meeting where Deutsche Bank's 2021 investment strategies were presented, "What is your investment strategy for Turkey in 2021?" Answering the question, Global Investment Manager Christian Nolting said:

“I think it's a bit early to talk about it, we do not want to rush to Turkey at the moment. We think that there are currently better opportunities in South Asia.”

Nolting stated that they saw changes in policies and that this was reflected in exchange rate performance, “We see that there are some changes to Turkey and this may be very interesting in the future, but not for now. We want to see a little more certainty on the interest rates and currency side.” Deutsche Bank Europe and Asia Investment Manager is Tuan Huynh, said, "Interest rates in Turkey are particularly interesting given zero or negative interest rates. We have some clients with a favorable risk profile investing in Turkish Lira, but the question is: Do we see better risk return opportunities? Huynh said that they mostly recommended Asian investments and continued his words as follows:

"We recommend the Asian side more. When we look from the pandemic perspective, Asia has overcome the epidemic, not only compared to Turkey, but also compared to the rest of the world. From a risk-return perspective, Asia is safer for us."

  Deutsche Bank Expects Interest Rate Increase from CBRT Following the CBRT's interest rate decision on January 21, Deutsche Bank Middle East and Eastern Europe Economist Christian Wietoska said, “A hawkish stance in line with the market and our expectations.” Stating that they expect an increase in interest rates in the upcoming meetings, Wietoska said: “As long as the USD/TL does not drop below 7.20 with a rapid rally, we anticipate another 100 basis points increase.”         Source: Bloomberg HT