funnypokerhands| Citi: Turkish market 'on the verge of renaissance'

Citigroup releasedfunnypokerhandsaccording to the latest reportfunnypokerhandsTurkey's stock market is "on the verge of renaissance," and investors who have fled Turkey in droves over the past few years may want to start returning.

After more than five years of sharp currency devaluation, foreign exchange reserves and unorthodox monetary policies, Turkey's economy has been traumatized.

Official data for April showed inflation in the country of 85 million people was close to 70%. Turks cannot afford basic goods. Since April 2019, the Turkish lira has depreciated by about 81% against the US dollar.

Turkish President Recep Tayyip Erdogan has exercised strict control over the central bank in the past few years, refusing to raise interest rates, calling it the "mother of all evils" and insisting that, contrary to economic orthodoxy, lowering interest rates is the way to cool inflation. But his approach ultimately backfired.

Since about a year ago, Erdogan has appointed a new economic and central bank team that seems committed to turning around Turkey's fate, no matter how painful the process may be.

The Turkish central bank aggressively raised interest rates by a total of 3650 basis points between May 2023 and January 2024. In March this year, the bank raised interest rates again to the current 50%.

Turkey's central bank said in March that it "will maintain a tight monetary stance until a significant and sustained decline in underlying trends in monthly inflation is observed."

Investors have also taken note of what the Turkish central bank has done.

"The Turkish authorities 'shift towards policy normalization has sparked investor interest in the country's assets," Citi said in a research note released Thursday.