Turkey’s main stock market index surged after the elections in which the pro-business AK Party secured a decisive victory.
Analyst Mert Yazicioglu at Yapi Kredi Bank said although the government has promised to push ahead with economic reforms, investors remain focused on arguments over the choice of a presidential and security issues: “Nervousness no, but I think there are still some question marks in people’s minds. Of course today it’s too early to discuss the question mark (over Turkey’s financial future) because this is the first day of the victory of the AK Party.” The markets believe the Islamic-rooted ruling party
got enough votes to continue its pro-business policies and economic reforms, but not enough to change the constitution and provoke problems with the powerful military.
On the foreign exchange markets, the Turkish currency, the lira, also rose back near its levels of 2001 before a major financial crisis cut its value. One woman at a Bureau de Change in Istanbul was happy with that and thinks the trend will continue. She said: “I expect the value of the dollar and the euro to go down. That’s why I changed my foreign exchange into Turkish lira. I think the economy will improve.” So far Turkey’s ruling party has pursued Western-style reforms to cut inflation, increase foreign investment and strengthen the economy in order to improve its chances of joining the European Union.