Foreign Investors' Interest in TL Assets Reaches Its Peak in Two Years

Rapid Increase in Foreign Investments

As we enter 2026, the interest of foreign investors in Turkish Lira (TL) assets has gained momentum. According to the Central Bank's data, in the first three weeks of the year, net inflows from foreign investors in stocks and government bonds reached approximately 2.8 billion dollars. This figure corresponds to 54% of the total foreign net purchases for the entire year of 2025.

Growing Appetite in the Bond Market

Experts expect the appetite shown by foreign investors, particularly in the bond market, to continue. The foreign bond share, which declined to 0.5% in the last quarter of last year, increased to 8.39% starting from March 2025, approaching a historic peak.

Short-Term Strategies Gain Prominence

It has been observed that large funds (such as Pimco) are creating significant demand in the market through short-term bond purchases. Investors are particularly focusing on bonds with 2-3 year maturities. However, it is expected that a transition to long-term bonds will only happen once the ongoing uncertainties in economic management are resolved.

Missing Investors and the Stock Market

In contrast, the durability of foreign investors in the stock market is said to be questionable. The stock exchange trading ratio hovering around 36.8%, along with a significant lack of information demand in the sector during 2023, are among the factors that reduce foreign interest.

Bond Stocks Approaching Historical Peaks

In March 2025, the bond stock of foreigners reached a historic peak of 22.65 billion dollars. Experts predict that a return to these levels will continue.

In summary, foreign inflows into TL assets have gained momentum due to Turkey’s tight monetary policies and rating upgrades from international credit rating agencies. Investors continue to focus on TL assets with the positive atmosphere in the markets.