TL Investment Advice for Those Who Have the Courage

Credit Agricole gave TL investment advice for those who "have the courage". The bank said that the Turkish lira offers attractive carry trade opportunities.

Credit Agricole stated that the Turkish lira distinguishes itself from other developing country currencies with its attractive interest rates and limited volatility, and offers interesting carry trade opportunities for those with the courage. Bank stated that the 19 percent interest rate in the Turkish lira is more advantageous compared to the other high-interest currencies Russian ruble, Indian rupee and Mexican peso, and it is attractive considering the carry trade/volatility ratio due to the low volatility of the Turkish lira. Emerging Markets Research Manager Sebastien Barbe, stating that the Turkish lira offers interesting carry trade opportunities for those with the courage, said, "The risk here is a big interest rate cut that may come early." Barbe noted that there are key scenarios for the Central Bank of the Republic of Turkey to start a gradual rate cut from the fourth quarter. Stating that they think that the FED's (US Federal Reserve) asset purchase reduction will not start before November, analysts emphasized that many developing country central banks tightened their monetary policies before the FED.