JP Morgan Closes TL Overweight Position: 55 Percent Profit Realized, Shift to Tactical Strategy

JP Morgan has closed its core overweight position in the Turkish Lira, which generated a 55% return since September 2023. The bank has now shifted to a short-term tactical approach. Details, risks, and market expectations are in our report.

JP Morgan Closes TL Overweight Position: 55 Percent Profit Realized, Shift to Tactical Strategy
Liberal TR Haber Merkezi
Publish: 31.05.2026
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JP Morgan Closes Its Long-Term Turkish Lira Position and Realizes Profits

U.S.-based investment banking giant JP Morgan has fully closed its Turkish Lira position, which it had maintained as a core overweight allocation in its GBI-EM model portfolio since September 2023. During this period, the bank achieved a total return of 55% in U.S. dollar terms, realizing a significant profit.

In a research note written by JP Morgan strategists Anezka Christovova and her team, the bank stated that the position had been reduced on April 30 and has now been completely closed. Going forward, JP Morgan will adopt a short-term tactical approach.

Analysts emphasized that recent developments pose only limited near-term risks for the lira, while expecting the Central Bank of the Republic of Türkiye (CBRT) to continue using low exchange-rate volatility as a policy tool. Reasons behind the position change include lower expected returns, financing needs related to the current account balance, potential pressure from high energy prices, and the risk of an early election.

JP Morgan also noted that during election periods, dollarization pressures can generally be managed more effectively through short-term carry trade positions. The move is being interpreted as a profit-taking strategy and signals a cautious stance toward the markets.

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Liberal TR Haber Merkezi
Liberal TR Haber Merkezi
A digital news platform delivering developments in Türkiye and the world to its readers with an objective and principled perspective. Liberal TR Haber Merkezi.
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