Turkish Lira Falls After Erdogan Wins Another Five Years in Power
- Market focus turns to changes in economy team, policies
- Investors betting the current policy mix can’t be sustained
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Turkey’s lira weakened toward a record low after Recep Tayyip Erdogan won a presidential runoff election, extending his time as the nation’s longest-serving leader in a tenure that has increasingly alienated foreign investors.
Stocks jumped and dollar bonds were mixed on Monday as investors awaited appointment of a new economic team that he promised would have “international credibility,” hinting at a potential turn away from an unorthodox policy mix based on ultra-low interest rates and heavy state intervention in markets. Erdogan is expected to announce his new cabinet as soon as Friday, according to two Turkish officials familiar with the matter.