Abu Dhabi sovereign wealth fund ADQ might be buying bonds from Turkey:Turkey is considering offering 10-year bonds in tranches to ADQ by the end of the year, Turkey’s Treasury and Finance Minister Mehmet Simsek told Bloomberg. The potential sale would be geared towards stymying Turkey’s decline in foreign investments, which has thrown its balance of payments out of whack and resulted in short-term liabilities exceeding USD 200 bn.

The proceeds from ADQ — which has some USD 160 bn in assets under management at its disposal — will finance reconstruction efforts in Turkey’s southeastern provinces struck by earthquakes in February, Simsek said.

The world’s second-worst emerging market currency this year? Restrictions on Turkey’s financial market have been enacted since 2018 to stabilize the lira, labeled the second-worst emerging market currency by Bloomberg data. Turkey is on a mission to slow down economic growth and inflation, which sits above 60%, to alleviate restrictions and attract foreign investors wishing to borrow in lira on the offshore market, said Simsek. With the potential inaugural bond sale, the Turkish central bank also plans to impose higher interest rates.

The Middle East likes Turkey for investment: Turkey is one of the UAE’s fastest-growing trading partners and sixth largest overall, according to our Economy Ministry. In addition to the UAE, Saudi Arabia has expressed an interest in investing in Turkey’s USD 1 tn economy, reports Bloomberg.

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