Turkey-Back in The Game

Dear friends,

On Wednesday, September 27th, the multinational U.S. investment bank Goldman Sachs, offering services in international financial advisory, investment banking, and financial management, released a 26-page Turkey report titled "Turkey-Back in The Game," signed by 10 economists.

I would like to tell you about the summary of this report:

The report began by discussing the transition from irrational policy choices in Turkey's economy in the past, which led to a continuing unstable market and diminishing investor interest, to a shift towards rational policies and an increase in interest rates and monetary tightening.

• POSITIVE BANKING INDEX

In the report, which points out that Turkish banks have been lagging behind their export-oriented competitors for a long time, it was mentioned that if Turkey regains stability with rational monetary policies and restored confidence, the banking sector in Turkish stocks could take the forefront.

• GOLDMAN SACHS USD/TRY EXPECTATIONS

The report indicates that due to recent increases in policy interest rates, deposit rates are likely to rise further. Despite the ongoing risks associated with the current policy, the report proposes that the announcement and support of a positive real interest rate strategy (Real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.) could potentially help counter the depreciation in the exchange rate, as reflected in forward pricing, in contrast to previous years. According to Goldman Sachs' forecasts, it was stated that the USD/TRY exchange rate is expected to be at levels of 28 and 29 within 3 months and 6 months, respectively.

We can clearly observe from Goldman Sachs' anticipated Turkey report that positive returns are being reported. The gradual return of confidence over time in rational policies suggests that there will be more reports to come. With structural reforms underway and a commitment to rationality, Turkey is poised to become increasingly attractive to foreign investors.

Regards,

Alpcan CO?KUN