Economics

Investors Keep Pulling Cash Out of Turkey

  • Foreign investors withdrew $7.6 billion from stocks, bonds
  • Capital Economics sees lira, bonds extending declines

Turkish lira banknotes sits on the counter of a foreign currency exchange office in Istanbul, Turkey, on Friday, Oct. 30, 2015. As Turks prepare to vote this weekend, some analysts see an increasing likelihood the five-month political deadlock that roiled markets is nearing an end.

Photographer: Kerem Uzel/Bloomberg
Lock
This article is for subscribers only.

Foreign investors look set to keep pulling their money out of Turkey after dumping a record amount of stocks and bonds this year.

Investors from abroad withdrew $7.6 billion from assets in 2015, including $1.4 billion in outflows last month as the party that President Recep Tayyip Erdogan helped found swept back into power, initially triggering a rally in the nation’s assets. Declines resumed as the war in neighboring Syria and Russian sanctions threatened the country’s $720 billion economy.