The day after the presidential election in Turkey and after the news that the second round elections were approaching, the BIST Banks index of local banks fell by 8 percent, the lira depreciated significantly against the dollar. In this respect informs Reuters cites data from Investing.com.
One day after the presidential elections, the BIST Banks index of local banks dropped by 8 percent. Moreover, in just two days, the shares lost nearly 20% of their value. Additionally, the government-controlled lira fell to 19.71 against the dollar, close to a record 19.8 in March.
The market in Turkey has started to decline as investors expect incumbent Recep Tayyip Erdogan to continue running the country in line with the current economic strategy, according to John Harrison, TS Lombard Managing Director of Emerging Markets Macro Strategy.
On May 10, Dünya newspaper referred to the opinions of experts and market participants. WroteLandlords in Turkey began to refuse to rent their homes because they expected a possible increase in prices after the election.
Prior to that, the press service of the country’s statistics agency (TUIK) reported that annual inflation in Turkey fell from 50.5% to 43.68% in April 2023.