Wells Fargo Sees Sharp Lira Rally If Turkish Opposition Triumphs Over Erdogan

  • Erdogan exit would bring more orthodox policy, economist says
  • Status quo most likely election scenario, according to McKenna

A person counts out Turkish lira banknotes.

Photographer: Erhan Demirtas/Bloomberg
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A victory for Turkey’s opposition parties in their bid to unseat President Recep Tayyip Erdogan could trigger big gains for the lira by ushering in more orthodox monetary policy, according to a Wells Fargo & Co. economist.

A bloc of six parties that oppose Erdogan earlier this week named Kemal Kilicdaroglu, a veteran politician and economist, as their candidate to take him on in elections slated for May.