Türkiye, Elections in Türkiye | The Turkish lira is near the bottom, just hours after Erdogan’s victory

Türkiye, Elections in Türkiye |  The Turkish lira is near the bottom, just hours after Erdogan’s victory

The Turkish currency has weakened by more than 7 percentage points since the beginning of the year and has lost more than 90% of its value against the dollar over the past decade.

The Turkish economy is characterized by remarkable ups and downs, accelerating inflation and an ongoing currency crisis.

Since 2021, the authorities have directly intervened in the currency market, and the daily exchange rate fluctuations are strictly regulated and foreign observers describe them as abnormally small.

No optimism

Erdogan’s victory discourages potential investors. Only the most optimistic hope is that the president will now feel confident enough to reintroduce traditional economic policy, says Hasnain Malik of the analysis firm Tellimer Equity Research.

Benjamin Picton, chief macro strategist at Rabobank, told Reuters that Erdogan’s victory will increase pressure on the Turkish lira.

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Erdogan declares his victory in the elections

Erdogan’s surprisingly strong support in the first round of the election led to a rush of selling of Turkish government bonds and higher insurance premiums for those exposed to Turkish government debt.

President Recep Tayyip Erdogan has lived through years of economic chaos, a state that many foreign economists attribute to government interference and his contradictory interest rate policies.

does not bite

But economic mismanagement does not seem to have bitten the electorate. When all the polls opened, the figures showed Erdogan had 52.1 percent support, while 47.9 percent rallied behind opposition leader Kemal Kilicdaroglu.

– The only winner is Türkiye. We will rule for the next five years, Erdogan told his supporters from the roof of a bus in Istanbul, and we will win the support of the people as we did 21 years ago.

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Steep slope for Erdogan’s rival

Leaders from around the world congratulate Erdogan on his election victory. Prime Minister Stohr says he expects the country will now say yes to Sweden’s NATO membership. US President Joe Biden looks forward to continuing to work together at NATO on bilateral issues and shared global challenges.

The European Union, Great Britain and NATO also send congratulations to Erdogan. So are Russia and China.

Not a member of the European Union

The leader of the largest party grouping in the European Union Parliament, Manfred Weber, believes that Erdogan’s re-election should lead to a deadlock in the process of Turkey’s status as a member of the European Union. The European Union opened the door for Turkey to become a candidate country in 1999, and formal negotiations began in 2005.

Since 2013, little has happened, and the process has stagnated. Heavy EU states believe that Turkey does not belong to a democratic organization like the European Union, and that the country undermines the rule of law and core European values.

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Erdogan’s rival: – We all missed democracy

But more recently, last March, Erdogan called for a resumption of negotiations.

And now the leader of the European People’s Party (EPP), which brings together centre-right parties, says the process has reached a dead end.

– The past few years have shown that close partnership is important, but no one wants Turkey to join the European Union as a full member, neither Turkey nor EU countries, says Weber. He believes that the process must end because it hinders rather than promotes better relationships.

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Weber says in an interview with Funke Media Group that Erdogan should immediately give up Sweden’s NATO membership.

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Polling stations in Türkiye are open

Jabori Obasanjo

Jabori Obasanjo

"Coffee trailblazer. Certified pop culture lover. Infuriatingly humble gamer."

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