Turkish elections: lira, stock markets tumbling after President Recep …
Jun. 8, 2015, 9:35 AM
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REUTERS/Murad SezerTurkish President Recep Tayyip Erdoğan cast his ballot at a polling station during the parliamentary election in Istanbul on Sunday.
Turkey’s stock market is tumbling and the lira is down over 5% against the dollar Monday morning after President Recep Tayyip Erdoğan suffered a huge setback in the country’s elections.
Erdoğan’s AKP has suffered its first fall in support in four elections after a new party representing minority Kurds in the country made huge inroads in Sunday’s polls.
The result means Erdoğan will probably be unable to form a majority government and will most likely have to form a coalition, possibly with Turkey’s far-right party.
Alternatively, fresh elections could be called within six weeks if no government can be formed.
The uncertainty has sent investors heading for the hills. The Turkish stock market has opened down over 8%, and the Turkish lira is down over 5% against the dollar on the news, its worst one-day fall in seven years.
Investing.comNews of the election result has sent the lira tumbling against the dollar.
Erdoğan’s Justice & Development party (AKP) won 41% of the vote, compared with 49% in 2011 elections. But the new Kurdish HD party managed to capture 12% of the vote, uniting Kurds with liberal left-wingers in Turkey.
The result is a blow not only for Erdoğan’s party, but also for his ambition to consolidate his own power and move the Turkish government to a more presidential system.
Erdoğan, who has ruled for 13 years, campaigned with a view to convert Turkish government into a presidential system, rather than a parliamentary system. Voters have resoundingly rejected this vision.
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Turkish elections: lira, stock markets tumbling after President Recep …
