ISTANBUL, June 25, 2026 — French banking group Société Générale has expressed a constructive outlook for the Turkish lira, recommending forward-position strategies that could benefit from Türkiye’s high interest-rate environment and ongoing monetary policy normalization, according to a report highlighted by Turkish business media.

The bank’s analysts said the Turkish lira continues to offer attractive carry trade opportunities as the Central Bank of the Republic of Türkiye maintains relatively high interest rates while pursuing policies aimed at reducing inflation and supporting financial stability. Market participants have increasingly viewed the lira as one of the more attractive emerging-market currencies for yield-seeking investors.

Société Générale reportedly recommended taking positive forward positions in the Turkish lira against major currencies, citing expectations that the currency’s depreciation path could remain controlled while investors continue to benefit from substantial interest-rate differentials.

The bank’s assessment comes amid improving investor sentiment toward Turkish assets and a broader expectation among international financial institutions that Türkiye’s orthodox economic policies will continue. Several global banks have noted that tight monetary conditions and efforts to reduce inflation have supported foreign investor interest in Turkish markets.

Analysts noted that forward-market positioning allows investors to capitalize on interest-rate advantages without requiring direct exposure to spot foreign-exchange movements. Such strategies have gained popularity among global investors seeking returns from emerging-market currencies while managing exchange-rate risk.

The positive outlook from Société Générale contrasts with some forecasts that still anticipate gradual depreciation of the lira over the medium term, although many analysts expect any weakening to occur in a more predictable and controlled manner than in previous years.

Market observers say the sustainability of the strategy will largely depend on Türkiye’s inflation trajectory, central bank policy decisions, foreign capital inflows, and global financial conditions in the months ahead.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök