Last Updated On: Apr 26 2021 02:10 Gmt+3
Turkey is seeking to ramp up the issuance of Islamic sukuk bonds to help compensate for a decline in foreign investment in the country.
But the economic effects of the COVID-19 pandemic, combined with concerns about economic policy in Turkey, have reduced demand for the sharia-compliant investment tool.
“Volatility is part and parcel of doing business in Turkey,” said Guillaume Petitgas, head of emerging markets, debt capital markets for the Middle East and Africa at HSBC, according to a January report published by the Bonds & Loans website.
Many foreign investors have been spooked by accelerating inflation in Turkey, economic and monetary policy, and the decline of the lira, which traded near a record low of 10.07 to the euro on Monday.