Turkish policies have revealed a little light, but the economy remains deep in the woods. There have been some positive developments over the past three months, including the start of the vaccination programme and some normalisation of the monetary policy. These steps, combined with relatively bullish EM sentiment, restored some confidence among investors who promptly increased exposure to Turkey – its sovereign USD bonds rallied by 13.3% in the last three months of 2020, one of the best performers in EM. But creditworthiness remains in dire straits; FX reserves have fallen to critical
levels, while the government is facing large external debt payments this year.
What you will learn: