[1/2] A US dollar banknote is seen alongside Turkish lira banknotes in this photo taken in Istanbul, Turkey, on November 23, 2021. Portal/Murad Sezer/Illustration
LONDON, May 28 (Portal) – The Turkish lira fell to a new record low against the dollar as President Tayyip Erdogan clinched victory in the country’s presidential election on Sunday, a victory that would carry his increasingly authoritarian rule into a third decade .
The currency opened the new trading week at 20.05 against the dollar, not far from Friday’s record low of 20.06.
The lira, which tends to fluctuate wildly ahead of regular trading hours, is down more than 6% year-to-date and has lost more than 90% of its value over the past decade as the economy is dominated by boom-and-bust cycles, inflationary spurts and a currency crisis.
Since the 2021 crisis, authorities have taken an increasingly active role in FX markets, with daily movements becoming unnaturally small and mostly moderating.
If the final record is confirmed, “it is unlikely that Erdogan will adopt a fully business-orthodox approach,” Wolfango Piccoli, co-president of consulting firm Teneo, said in emailed comments.
“However, some adjustments could be made to the current heterodox approach to buy time ahead of the March 2024 local elections.”
Trading is likely to be weak on Monday as many markets in Europe and the United States are closed for public holidays.
Reporting by Karin Strohecker and Ezgi Erkoyun, editing by Alexander Smith and Sharon Singleton
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