Turkey’s $75 Billion Hot-Money Boom Creates Policymaker Dilemma

A surge of capital inflows into Turkish lira assets has prompted policymakers to assess policy options for managing short-term investment flows. Turkey's central bank and finance ministry are evaluating measures to address the inflows without reducing currency support. The Turkish lira appreciated as foreign investors increased holdings of lira-denominated assets in 2025 and 2026.

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