The Turkish economy has been impacted by the COVID-19 pandemic, but structural reforms implemented after the 2001 crisis have helped the banking system remain stable. The pandemic has also led to the adoption of accommodative policy measures, which have generated vulnerabilities such as dollarization and erosion of central bank reserves. However, the shift to orthodox policy making in November 2020 is a positive step. The depreciation of the Lira may present an opportunity for foreign investors to invest in Turkish assets.
