The new economic model missed the remaining foreigner.

Turkish Foreign portfolio investment, which broke a record in financial markets at $158.3 billion in May 2013, quickly turned into a capital outflow with the U-turn in the AKP government’s economic policies. The New Model Economy dealt the final blow to the total foreign capital stock of ‘hot money’ in TL portfolios. AKP Chairman Recep Tayyip Erdogan announced on November 30, 2021 that Turkey has moved towards the ‘new economic model’. In the past 16 months there has been an outflow of currency from the stock market for 8,285.8 million dollars.
Between November 30, 2021 and March 17, 2023, foreign investors sold $5.914 billion of net shares, $2.345 billion of GDBS sales and $16.1 million of Private Sector Bonds ( ÖST). According to the weekly stock market statistics of the Central Bank, as of March 17 foreign investors have a stock portfolio of 26 thousand 409 million dollars. Foreign-owned government bond shares, on the other hand, were down to $1.2 billion.

PARTICIPATION OF 0.69 PERCENT

Abroad also has deposits of 30.5 billion dollars. In recent years, foreign investors have rapidly replenished their TL portfolios and their holdings in these stocks have fallen to record lows. The participation of foreigners in the stock market decreased to 28.9 percent as of March 17. This rate broke a record with 66.4% in 2013. The participation of foreigners in bonds, on the other hand, fell to the lowest level in history with 0.69 percent. Thus, the total stock of speculative capital made up of shares, government bonds and deposits decreased to 58.3 billion dollars as of March 17.

Years later, they look for an opportunity in Türkiye.

According to Reuters, foreign investors will hold meetings in Istanbul and Ankara years later to try to understand whether the election period will create an opportunity to increase their positions in Turkey, which have been reduced considerably in recent years and even reduced to almost zero in the TL- denominated bond market. Turkey aims to provide the foreign exchange financing it needs by waiting for hot money. Most importantly, however, the Turkish economy will exit the interest, exchange rate and inflation spiral permanently. To do this, the roadmap indicated by economists includes comprehensive reforms and productive policies.