MÜSİAD President Mahmut Asmalı stated that increases may be observed in "hot money" inflows following Türkiye's removal from the FATF grey list, and said: "The risks of hot money inflows and outflows must definitely be taken into consideration. Our view as MÜSİAD is that the focus should be on increasing medium and long-term portfolio investments and direct investments."
In his written statement, Asmalı emphasized that both today's decision by FATF removing Türkiye from the grey list and the decline observed in the CDS risk premium over the past year, together with the upward revisions by credit rating agencies, have once again made Türkiye a safe haven for investment.
MÜSİAD President Asmalı shared the following assessments:
"The possible increases to be observed in hot money inflows will support the buoyant appearance of the domestic market by reducing the pressure on the exchange rate. The risks relating to the possibility that hot money inflows and outflows may occur in an extraordinary and unforeseeable manner and at speed must definitely be taken into consideration. Our view as MÜSİAD is that the focus should be on increasing medium and long-term portfolio investments and direct investments.
For our past experience shows that short-term capital inflows relieve the markets only momentarily and do not offer a permanent solution. On the other hand, rapid and unstoppable capital outflows can leave permanent damage on the markets. In this context, our view as MÜSİAD is that the intensity of hot money inflows in the financing of the current account deficit should be reduced and the focus should be on increasing medium and long-term portfolio investments and direct investments. At this point, we state that the policies to be formulated by the economic administration must possess long-term effectiveness, and we reiterate our belief that the production, export and employment-oriented growth process in the Turkish economy will continue."