France’s established bank, Societe Generale, advised its investors to buy Turkish lira following the presentation made by Central Bank Governor Karahan.
The French banking giant Societe Generale made a notable recommendation to its investors following the inflation report presentation by the Governor of the Central Bank of the Republic of Türkiye (CBRT), Fatih Karahan.
According to a report by BloombergHT, Societe Generale suggested a short position on the Dollar/TL exchange rate. This recommendation implies a buy for the Turkish lira, with a buying price set at 36.36 lira and an investment duration of 3 months. The institution expressed its expectation of a total return of 8% on this position.
For buy positions, the institution recommended a stop-loss sale at 35.05 TL.
The assessment predicted that the CBRT would not make any interest rate cuts until February 2025.
SocGen stated, “The level of reserves even exceeds foreign ownership of Turkish equities and government bonds,” and it expects a gradual nominal depreciation of the Turkish lira to continue, while total returns are anticipated to be largely positive.