Turkiye’s Removal from FATF Gray List Sparks Economic Optimism

Experts Anticipate Boost in Foreign Investment and Capital Inflows in Turkiye

Experts have expressed positive reactions to Turkiye’s removal from the Financial Action Task Force (FATF) gray list, noting its potential to enhance foreign investor confidence and facilitate capital movements. Turkiye successfully exited the gray list, a move deemed crucial by NCM Securities Corporate Relations Director Ahmet Uluhan, who emphasized the significance of overcoming this long-anticipated milestone for the economy.

Uluhan underscored the multifaceted implications of this development for Turkiye’s economic policies and future steps, expecting clearer impacts to manifest in the coming period. He remarked, “We are aware of the interest and appetite of many international investment funds towards the Turkish economy. However, we also know that these funds refrain from investing in countries listed on the gray list due to criteria related to legal regulations. With this development, the interest of such major investment funds is expected to increase further, enabling them to invest in Turkiye.”

Anticipating primarily positive contributions to foreign inflows, Uluhan added, “Being on the gray list also entails restrictions on international transactions and complicates access to credit. Therefore, I believe that we are entering a period where the multifaceted positive effects of exiting the gray list will be observed in our economy.”

Parallel expectations Professor Dr. Erhan Aslanoglu, Vice Rector of Istanbul Topkapi University, also positively evaluated Turkiye’s removal from the gray list. He emphasized that this development aligns with expectations, stating that it will ease bureaucratic elements related to the country’s trade and capital transfer movements. Moreover, he highlighted its potential to contribute to enhancing credit ratings, attracting investments, and bolstering economic trends.

Aslanoğlu noted, “Continuous monitoring is crucial. It will likely continue in the upcoming period. Sustainability is also important. Moving away from this region and further enhancing it will further amplify these contributions.”

Dr. Ismet Demirkol, Founder of Pariterium Consulting, welcomed Turkiye’s removal from the gray list, anticipating positive impacts on increased capital inflows, portfolio entries, and contributions to the bond market. He suggested that sustained structural reforms in technology, innovation, and green energy could further boost direct foreign investment inflows.

Source: AA / Prepared by Irem Yildiz

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