Erdogan's Win Weakens Turkish Lira
The Turkish lira went down towards a new low against the US dollar. President Tayyip Erdogan says he won the election. The win means he will rule for more than 20 years and be more authoritarian.
The currency started the new week at 20.05 to the dollar. On Friday, it hit a record low of 20.06.
The lira goes up and down a lot. It's gotten weaker by 6% this year. Over the last 10 years, it's lost most of its value. The economy has been unstable and had problems with inflation. There's also been a crisis with the currency.
After the crisis in 2021, the authorities got more involved in foreign exchange markets. These daily moves aren't very big and mostly show a weakening.
Wolfango Piccoli from Teneo said that if confirmed, Erdogan may not fully support an economic orthodox method.
But, we could make changes to the current approach to buy us time before the March 2024 local elections.
On Monday, trading is predicted to be quiet. Numerous European and American markets will be closed due to holidays.
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The Emir of Qatar congratulated Turkish President Erdogan before the final election result. The election was held on Sunday. Erdogan claimed victory even before the vote counting had ended. Qatar and Turkey have friendly relations. They share similar foreign policies. The Emir’s message was seen as a gesture of support. Erdogan thanked his "brother" the Emir for his message. He said the two countries would continue to stand together.
Erdogan wins Turkey elections. He says his party will rule for five years. Erdogan's party, AKP, won more than 50% of votes. Opposition party, CHP, won around 30% of votes. Erdogan has been in power since 2003. Turkey has a presidential system. Erdogan says he will continue to make changes. Opposition parties are concerned about Erdogan's power. International observers are monitoring the situation.
Putin congratulates Erdogan. The victory showed that the Turks support Erdogan's foreign policy. It is an independent foreign policy. Erdogan won the election. Putin sent his congratulations.
